Redevelopment of Golden Shoe Car Park

The assignment details the redevelopment of Golden Shoe Car Park into a new business named CapitaSpring. The report explores different exit strategies, including merger and acquisition, liquidation, keep in family, initial public offering, and others. It concludes that merger and liquidation are the simplest methods for a firm like CapitaSpring. The report aims to provide insights on how to enhance financial status through strategic decisions.

Redevelopment of Golden
Shoe Car Park

Table of Contents
INTRODUCTION...........................................................................................................................1
Presenting some exit strategies for CapitaSpring........................................................................1
CONCLUSION................................................................................................................................3
REFERNECS...................................................................................................................................4

INTRODUCTION
Redevelopment is the process which helps to expand current business. The current
project is based upon a case scenario of Golden Shoe Park whose CEO wants to redevelopment
of Carpark into new CapitaSpring office building. For this, the report helps to present some exit
strategies and then present one best suited method for a company with proper recommendations.
Presenting some exit strategies for CapitaSpring
The Golden Shoe Carpark wants to redeveloped their existing business into new business
name as 'CapitaSpring'. As the company currently faces some financial problems and due to this
it wants to convert its existing business into new one in 2021. So that it may help a company to
raise its financial status in market (Macaulay, 2018). In order to redevelop its business, company
wants to take exit from it. Therefore, there are so many exit options available some of them are
as mentioned below:
Liquidation: it is one the most common exit strategy which every small business opt.
Under this method owner sell all assets to someone and this is adopted by those business who is
a single owner of a company. The biggest advantages of using this is that it is so simple to use
and the business is also wind up easily and quickly. But on the other side, it has the lowest return
on investment (ROI), which means that the only money from a liquidation sale is from a disposal
of asset (Hassan, Ghauri and Mayrhofer, 2018).
Keep a business in a family only: it is also a simple method to implement because
business will run by a family members only. The advantage of using this, can make a smooth
transition by grooming a family successor. As a result, if a person needs any advice then the old
owner can suggest ways in order to take from some problems. While on the other side,
developing a family succession plan can be difficult and lead to creates some differences
between family members (Kienzler, Kindström and Brashear-Alejandro, 2018).
Merger and Acquisitions: It is a method, under which a company either buy by a
mergers with some goals so that it means to the flexibility in a terms of involvement. That is why
it is consider the best method for small business. But the process takes a long time but still many
business owner will adopt this method. Even acquisition or to acquire business can also be
consider another method to take an exit from the existing business (Brueller, Carmeli and
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Markman, 2018). Merger and acquisition is simply merging with similar company and this is
quite helpful for many companies.
Initial Public Offering (IPO): It is a quick way and preferred mode but as the internet
bubble burst the IPO rates decline every year and therefore, it is not used by any company. As
the shareholders are demanding and their liabilities concerns are so high that is why they did not
prefer to use this options (Exit strategies, 2018).
Suitable strategy for CapitaSpring: As per case scenario, for a quoted company,
liquidation and merger is the best suitable option for a company. As the company recently
acquire Asia Square tower which increases their debt ration and may further financial risk for a
company. That is why the Golden Shoe Carpark must have the to sell all its current assets and
then merge it with another similar company in order to expand its business.
Justification: Liquidation is so simple method to execute and the current business can be
easily wind up which helps to shut it down. Golden Shoe Carpark can also merge with some
another company will be helpful for a company in its future growth. By merging with another
company will be helpful because it can penetrate to some new market and the chances of it
betterment are increases. Moreover a products will be developed and as a result, the company
can easily maximizes their profitability (Ahmed, Manwani and Ahmed, 2018). Choosing this
option will help a company to expand its business in new market and if two companies merges it
will definitely get benefit at economies of scale.
Additionally, as a company merges its overall revenue will automatically increases and as
a result its financial status will automatically upgraded. As the company initially faces some
financial crisis that is why the company has to take an exit in a form of liquidation or merger
with some another company.
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CONCLUSION
By summing up above report it has been concluded that Golden Shoe Carpark wants to
redeveloped its business by name CapitaSpring. As the report presents the overview of a
company and concluded that merger and liquidation is consider the simplest method for a firm.
That is why, the company can opt this option as a exit strategy because it help to enhnace its
financial status.
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REFERNECS
Books and Journals
Ahmed, F., Manwani, A. and Ahmed, S., 2018. Merger & acquisition strategy for growth,
improved performance and survival in the financial sector. Jurnal Perspektif
Pembiayaan Dan Pembangunan Daerah.5(4). pp.196-214.
Brueller, N. N., Carmeli, A. and Markman, G. D., 2018. Linking merger and acquisition
strategies to postmerger integration: a configurational perspective of human resource
management. Journal of Management.44(5). pp.1793-1818.
Hassan, I., Ghauri, P. N. and Mayrhofer, U., 2018. Merger and acquisition motives and outcome
assessment. Thunderbird International Business Review.60(4). pp.709-718.
Kienzler, M., Kindström, D. and Brashear-Alejandro, T., 2018. Value-based selling: a multi-
component exploration. Journal of Business & Industrial Marketing.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Online
Exit strategies. 2018. [Online] Available through: <https://www.businessinsider.com/startup-
exits-should-be-positive-and-planned-early-2011-1?IR=T>.
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