Reference no: EM133082229 , Length: word count:2000
Learning outcome 1: Critically evaluate the financing requirements of an entity and recommend appropriate strategies for meeting such requirements.
1. You should write no more than 2,000 words in total.
Your bibliography will not be included in the word count, but where you quote within the text of your assignment (e.g. Smith & Jones identified that...) this will be included in the word count.
You should use the Harvard system of referencing.
JD Sports Fashion PLC (JD) - KING OF TRAINERS
Required:
Following JD's robust expansion strategy, especially during the window of pre and post pandemic period, the marketing director has raised concerns of the company's future viability to compete in the digital age of e-commerce. You work in their corporate finance department and have been asked to provide a report to the board of directors that addresses the following:
(a) JD, the UK company, made the following specific North American companies mergers and acquisitions:
(i) In 2018 - Finish Line US sports retailer for $558 million (ii) In 2020 - Shoe Palace US sports retailer for $681 million (iii) In 2021 - DTLR US sports retailer for $495 million
Your report introduction should start with a brief discussion of the long- term sources of finance available in the financial markets and the merits and demerits of these sources.
Next, you should specifically discuss the financing strategiesemployed by JD in the above acquisitions and finally your research should conclude whether the financing modelemployed is sustainable and shy of and signs of bankruptcy looming in the near future.
(b) In April 2019, JD Sports made a takeover bid of a struggling UK company Footasylum listed in the alternative investment market (AIM) for £86 million. You are required to explore the financing bidfor this offer and the reasons why to date (1 October 2021), the Competition & Markets Authority (CMA) does not formally confirm the bid.
Conclusion and recommendation on the financing decisions.
(Report format, good style presentation, grammar and referencing)
Attachment:- Financial Strategy Course.rar