Merlin Entertainments: Finance and Funding Sources Analysis Report

This report provides an analysis of the funding sources for Merlin Entertainments, focusing on the financing of its business expansion projects. The report explores various options, including government grants, equity, and business angels. It examines the advantages and disadvantages of each source, such as the benefits of government grants in terms of no repayment and the implications of equity financing. The report aims to determine the most suitable funding option for Merlin Entertainments, considering factors such as cost-effectiveness, risk, and the impact on the company's financial liabilities. It emphasizes the importance of strategic financial planning for business growth and sustainability, providing insights into how different financing methods can support the company's objectives.

Finance is the lifeblood for an enterprise as arranging finance will require patience and intelligent skills to gather financial resources
from external parties. Funding is regarded as essential part of an enterprise which needs to be selected from best appropriate sources
which help Merlin entertainment to get cost efficient techniques which will not arise any kind of burden on an enterprise which will
increases the liability of an organisation in return.
The main motive of an enterprise is to use different sources of finance to support their existing conditions as it is widely used by an
entity in order to expand their business entity.
Equity shares
 It is considered as
best suitable form of
financing in which
equity shareholders
invited will get
ownership in return.
 The cost of issuing
shares is not enough
as it depends on the
size of entity
 It is less risk to use
this source
 No repayment of
capital only in the
case of wounding up
of the business
 Dividends to
shareholders and
participating in the
profit.
Government grant
 No need to repay the
amount borrowed
 Additional support from
tourism department
Cross railway projects is the one of business expansion
projects in which, merlin entertainments entered into with
the help of external entities by taking their help ion form
of arranging financial resources.
Funding can be done from different sources such as grant
from tourism department, business angels and equity.
Business angels
 Support from existing
industry experts coupled
with the financial support
from investors
 Interest in form of business
returns to be paid
 Any amount can be taken
from the investors
The Best suitable source of finance
that can be arrange by Merlin
entertainments is government grant as
it is suitable for the business
enterprise to choose this form of
financing.
Arranging sources of finance