文档介绍：Chapter 15 Multinational Restructuring
Multinational Restructuring
15
Chapter
South-Western/Thomson Learning ? 2003
See for spreadsheets to pany this chapter.
Chapter Objectives
To introduce international acquisitions by MNCs as a form of multinational restructuring;
To explain how MNCs conduct valuations of foreign target firms;
To explain why the valuations of a target firm may vary among MNCs; and
To identify other methods of multinational restructuring.
Multinational Restructuring
Building a new subsidiary, acquiring pany, selling an existing subsidiary, downsizing operations, or shifting production among subsidiaries, are all forms of multinational restructuring.
MNCs continually assess possible forms of multinational restructuring to capitalize on changing economic, political, and industrial conditions across countries.
Online Application
What are the economic, political, and industrial changes for various countries?
Consult the mercial Guides prepared by embassy staff at //.?openform.
Refer to the CIA’s World Factbook at //./.
International Acquisitions
Through an international acquisition, a firm can immediately expand its international business since the target is already in place, and benefit from already-established customer relationships.
However, establishing a new subsidiary usually costs less, and there will not be a need to integrate the parent management style with that of the pany.
Value of International Acquisitions
(billions)
$
Foreign Acquisitions
of . Firms
.
Acquisitions
of Foreign Firms
Value of International Acquisitions
(billions)
$
World-wide
Cross-Border
Acquisitions
International Acquisitions
Like any other long-term project, capital budgeting analysis can be used to determine whether a firm should be acquired.
Hence, the acquisition decision can be based on parison of the benefits and costs as measured by present value (NPV).
International Acquisition