Residential Properties PLC Acquisition of Unlisted Company

Student’s Name 1
Residential Properties PLC Acquisition of Unlisted Company
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Student’s Name 2
Introduction
The major objective of this paper is evaluating the decision of the Residential Properties PLC
Company in acquiring an unlisted company in the market. In an event when firms become
distressed, eminent restructure, insolvency, or rather the sale of company assets may be essential
for the company. For this reason, the paper’s major concern will analyze prospective funding
alternative used by the Residential Properties PLC Company in acquiring an unlisted company.
Since the choice is not the only priority, the last choice might be stressful (Feito-Ruiz and
Menéndez Requejo, 2013). When organizations have great concern compared to ones that would
have liquidated, and thus when the buyer gets unique competence or rather being effectively
strategic, acquisition of the firm can be effective for the two.
Certainly, such a prospect within internal attempts must be rigidly being considered in the
process of stating the probability that the project might fail which will make firms go to a
downward end. Therefore, acquisition of financial unstable companies tend to happen regularly,
although there is no consistent proof provided on how these acquisition techniques can be
profitable or not. Thus the major objective of this paper will be explaining various alternative
methods that will be used for the funding of the Residential Properties PLC unlisted company.
Additionally, there will be explanation on why the alternatives stated are effective and the
essential factors that play a key role in the acquisition process (Feito-Ruiz, Fernández and
Menéndez-Requejo, 2014). Lastly, the paper will highlight various financial choice and
investment decisions that the company will use so that the unlisted company can be effectively
acquired.

Student’s Name 3
Alternative methods used for funding Residential Properties PLC Acquisition
The Residential Properties PLC intends to utilize a significant amount for its acquisition of the
unlisted company. Moreover, it should be known that the company has gained profit over its
operational years that have been held in cash (Majumdar, 2014). The company has many reasons
for holding funds which will be effective for the future. Some of the prospective funding
methods to be used by the Residential Properties PLC Company are stated below:
1. Acquisition via mezzanine/Quasi debt
2. Debt Acquisition
3. IPO (Initial public offer)
4. Provision of bonds
Reasons used for methods stated above
Quasi debt is a coordinated type of financing that incorporates both value and obligation
highlights. In nature, it is similar with subordinate obligation however it accompanies an
alternative of being changed over to value. Quasi debt financing is reasonable for target
organizations with a solid accounting report, just as consistent productivity. The organizations
make consistent cash flows, however they may come up short on a solid resources. Adaptability
makes quasi debt financing engaging (Magri, 2014). The financing is a long haul capital fit for
impelling worth creation and corporate development.
Consenting to expect a seller's dedication is a conceivable option rather than paying in real
money or stock. Various affiliations' responsibility is the main role behind a game plan, as
underneath typical monetary conditions and high-intrigue costs make it difficult to get up to
speed with parts. In such conditions, the record holder's need is to diminish the risk of extra