Financial management, Financial Management

Assignment Help:

BigGardens Ltd (BigGardens) is a private company that owns and operates a chain of garden centres in the Bristol area.  The company has expanded rapidly over recent years, opening new sites frequently, mainly using retained profits to finance them.  The directors have found there are significant economies of scale in operating garden centres and they are keen to expand more rapidly by extending their geographical horizons.

The directors have reason to believe that Percy Ltd (Percy) might be for sale.  Percy operates fifteen garden centres in the West Midlands. The freeholds of ten of these sites are owned by Percy, the other five being leased under arrangements that expire in four years' time. Percy is owned by three sisters and their families.  The sisters are in their sixties and the directors of BigGardens believe that a reasonable offer would persuade the directors of Percy to sell the company.

You are a manager at BigGardens's auditors and the directors have asked you, as the only person whom they know and trust and with any knowledge of the subject, to meet them to provide some idea of the issues involved with a possible deal.

During the telephone conversation, when the meeting was requested, one of the BigGardens directors said

              "We are asking for this meeting because we haven't any experience of anything like this.  Should we be considering this deal in the first place?  Assuming that we decide to go ahead, can we get someone to help us with it?  How much should we offer to Percy?  How should we pay?  If we have to pay in cash, how could we raise it?  Is it best to buy the assets from Percy or buy all of the shares in Percy?  Should we go straight to the Percy directors or get someone to act for us?  Are there any other issues that you feel that we should consider?"

In preparation for the meeting you intend to make notes of the points you will raise with the directors.  You are aware that the directors are people who have skills in horticulture and retailing, but not in more general business issues, particularly not in finance.


Related Discussions:- Financial management

Share price, what course a decrease and increase in share price

what course a decrease and increase in share price

Regulatory framework abroad, Regulatory Framework Abroad A regulatory m...

Regulatory Framework Abroad A regulatory mechanism, in terms of finance, is the mechanism to regulate the working of the financial system. Its function is to ensure the complia

Explain the term- trade receivable days, Explain the term- Trade receivable...

Explain the term- Trade receivable days (turnover) [Yearend trade receivables/Credit sales (or turnover)] x   365days It is the average length of time taken by customers t

Companies that would be best able to handle high debt levels, Give two exam...

Give two examples of types of companies that would be best able to handle high debt levels. Companies that manage local telephone service and those that manage natural gas deli

Distinguish between a credit card and a debit card, QUESTION (a) What a...

QUESTION (a) What are the main benefits of E-Banking to customers and banking institutions? (b) Internet Banking products and services are of two primary types, informationa

Assignment, what are the features of branch accounting

what are the features of branch accounting

What is corporate social responsibility, (a) The term "financial reporting"...

(a) The term "financial reporting" incorporates not only financial statements, but also includes other means of communicating financial and non-financial information. Financial rep

Help ASAP, If firm A has a higher debt-to-equity ratio than firm B then tha...

If firm A has a higher debt-to-equity ratio than firm B then that means what

Process of bringing a new international bond issue to market, Discuss the p...

Discuss the process of bringing a new international bond issue to market. Answer:  A borrower desiring to increase funds by issuing Eurobonds to the investing public will conta

Debenture, Debenture A kind of debt instrument that is not secured by p...

Debenture A kind of debt instrument that is not secured by physical any asset or collateral is known as debenture. Debentures are backed by the general creditworthiness and sta

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd