ii) advise the directors of a target company on the most appropriate defence if a specific offer is to be treated as hostile.
Financing acquisitions and mergers
Compare the various sources of financing available for a proposed cash-based acquisition
Evaluate the advantages and disadvantages of a financial offer for a given acquisition proposal using pure or mixed mode financing and recommend the most appropriate offer to be made.
Assess the impact of a given financial offer on the reported financial position and performance of the acquirer.
CORPORATE RECONSTRUCTION AND RE- ORGANISATION
Predicting corporate failure
Assess the risk of corporate failure within the short to medium term using a range of appropriate financial evaluation methods (this will require an ability to use multivariate techniques such as the Z and Zeta score models).
Advise on the application of financial distress models to firms in emerging markets given local regulatory and financial market conditions.
Assess a company situation and determine whether a financial reconstruction is the most appropriate strategy for dealing with the problem as presented.
Assess the likely response of the capital market and/or individual suppliers of capital to any reconstruction scheme and the impact their response is likely to have upon the value of the firm.
Recommend a reconstruction scheme from a given business situation, justifying the proposal in terms of its impact upon the reported performance and financial position of the firm.
Recommend, with reasons, strategies for unbundling parts of a quoted company.
Evaluate the likely financial and other benefits of unbundling.
Advise on the financial issues relating to a management buy-out and buy-in.
TREASURY AND ADVANCED RISK MANAGEMENT TECHNIQUES
The role of the treasury function in multinationals
Describe the role of the money markets in:
Providing short-term liquidity to industry and the public sector
Providing short-term trade finance
Allowing a multinational firm to manage its exposure to FOREX and interest rate risk.
Explain the role of the banks and other financial institutions in the operation of the money markets.
Describe the characteristics and role of the principal money market instruments:
Outline the role of the treasury management function within:
The short term management of the firm’s financial resources
The longer term maximisation of shareholder value
The management of risk exposure