Slide MGT411 Slide12

Chapter 15
Sourcing Equity
Globally

Copyright © 2007 Pearson Addison-Wesley. All rights reserved.

Sourcing Equity Globally
• To implement the goal of gaining access to global
capital markets a firm must begin by designing a
strategy that will ultimately attract international
investors.
• This would mean identifying and choosing alternative
paths to access global markets.
• This would also require some restructuring of the firm,
improving the quality and level of its disclosure, and
making its accounting and reporting standards more
transparent to potential foreign investors.

Copyright © 2007 Pearson Addison-Wesley. All rights reserved.

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Designing a Strategy
to Source Equity Globally
• Designing a capital sourcing strategy requires that
management agree upon a long-run financial objective
and then choose among the various alternative paths to
get there.
• Often, this decision making process is aided by an early
appointment of an investment bank as an official
advisor to the firm.
• Investment bankers are in touch with potential foreign
investors and know what they currently require, and can
also help navigate the numerous institutional and
regulatory barriers in place.
Copyright © 2007 Pearson Addison-Wesley. All rights reserved.

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