Borrowing in International Financial Markets
- 4
Brief Introduction
Financing the acquisition of a new business unitDescription
This course is an introduction to a transaction in which the Buyer (an industrial Company) acquires a business unit from a Seller which is located in a foreign country. The Buyer agrees to make a cash payment for the acquisition to the Seller at the closing of the transaction. The Buyer obtains the needed amount of money By taking a syndicated bank loan from a group of bänks which act jointly in this transaction in the form of a syndicate.
As a result, the Company making the acquisition can raise a much larger loan from the bank syndicate than what it could obtain from a single bank. On the other hand, the bänks which participate in the syndicate can limit their credit risk to a much smaller amount than what would be the case if a single bank gave the full loan to the Company making the acquisition.
Requirements
- Requirements
- To take my course, there is no need to have access to any specific software or additional material. It helps to have familiarity with basic accounting terminology. The reader should have an appropriate mindsets for studying how young companies grow and enter foreign markets.