Global Finance: Evaluating Superstore Locations and Prospective Acquisition

Global Finance

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Methodologies..............................................................................................................................1
Evaluation of the proposed new superstore locations and prospective acquisition.....................3
Recommendations........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCERS ...........................................................................................................................10

EXECUTIVE SUMMARY
Business philosophy and finance include an explanation of theory of economics and
actual business concerns. The report gathers Scylace plc financial data, that is a supermarket
grocery company and wants to expand business by opening new super store or acquiring
business of Helibeb plc. Different concepts and economic methodologies are being implemented
in order to identify the financial estimation of both project and profitability of acquisition
company. The different approaches such as cost of capital, rate of return, net profit margin ratio,
operating profit ratio assist in determining the overall return from different project investment as
well as profitability of Helibeb plc in future.
Thus, it has been recommended to Scylace Plc to make a take over bid over retailer
clothing company Helibeb Plc and select a option to build a store at location B. These option will
give better return in future and add huge profit in the context of respective firm.

INTRODUCTION
In present business world, the term of global finance is related to financial system that
consider regulators and different financial bodies that conduct business activities are
international scale (Gallagher, 2018). The main element of worldwide finance are basically the
large financial institutions like bank at international level which use to regulate the monetary
policies and settlement at global level. Managers use various economic standards and regulations
in each organization to identify and fix market problems and make scalar decisions for growth
and development. Business economic essence is broader as it is microeconomic theory where
regulations and norms are firmly established. Business economics is defined as the wider
concepts in which manager use to implement different economic theories and methodology in
making effective decision for the betterment in future period (Zhao and Huchzermeier, 2015).
The process of business financing is related with posting and communicating different crucial
financial points within annual statements such as cash flow statement, P&L account and balance
sheet.
In this report, methods of economic are used in order to assess the build new superstore
locations and
make a prospective acquisition with available financial resources are discussed. Valuable critical
evaluation is make to provide effective recommendation to Scylace plc in context to build a
superstore at specific location or make a takeover bid on Helibeb plc and make single store.
TASK 1
Methodologies
In business economics, manager use to apply different economic hypothesis and methods
in order to get the suitable outcome for different business circumstances within company
(Bassens and Van Meeteren, 2018). Some of these methodologies are discussed underneath that
applied by the manager of Scylace Plc in order to evaluate the total financial value of different
options. Company has two different option either to make superstore at specific location or two
take over the business of cloths retailer store Heibeb plc and make one superstore (Longlands
and Collier, 2018).
The proposed acquisition for and by each entity requires the correct use of the merger
agreement leading to the disputed offer and the payment of significant prices accompanying the
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