Corporate Fin Mgt NDLM.PDF

(Nora) #1

  1. Turnkey projects


A turnkey project contract stipulates setting up or construction of a factory which will be
transferred to its owner as soon as it starts functioning effectively.


Payment for these operations is spread over a period of time, and is linked to the progress
of the work.



  1. Specific contracts


Some companies, in view of their technical competence, are invited to operate in foreign
countries. The domains can be as varied as hydrocarbon exploration, public works,
construction of roads etc.,


Contracts for technological cooperation and mutual benefit may be signed for a specified
period between two or several companies for exchange of information on their respective
research activities.



  1. Joint Ventures


A joint venture is a collaboration of two or more enterprises (legal or physical entitles) to
achieve a common goal (say profit sharing in business or services). In international
context, one of the parties is generally from the host country. The parties agree to
contribute to the capital and share profits as per pre-decided ratios.



  1. Mergers and Acquisitions


The growth process in international business can be facilitated by acquisitions of existing
businesses and/or merging with them.


Mergers and acquisitions are often carried through a public tender for purchase or for
exchange. This is a financial technique that allows restructuring of enterprises either in a
friendly manner or in a hostile manner. The price is settled either in cash (purchase) or in
form of shares (exchange). When a public tender for purchase or exchange is offered
without the accord of the company management, it is called a hostile offer.


Strategies of Defense against Takeover Bids are


Regulatory, financial and legal.

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