Managing the Multinational Financial System

Managing the Multinational Financial System

With the buyout the company is not only controlling the finances on national basis, but also on multinational basis. In this case, it has control over the financial management in China and Australia besides the UK.

In the following the report demonstrates those are of finance which the company will be face after the buyout.

* Managing the Multinational Financial System

One distinguish difference for the financial management will be that the company can is able to move money and profits among the affiliated companies in UK, China and Australia through an internal financial transfer mechanism.

This also includes the transfer pricing. The company then is able to sell goods and services within the whole enterprise, between the parent company in the UK and its subsidiaries in China and Australia. The selling price of these goods is the transfer price.

* Foreign Exchange Risk Management

Translation Exposure:

Operating Exposure

Transaction Exposure:

* Multinational Working Capital Management

* Devising and management of a Global Financing Strategy

* Overseas Investment Analysis

* International Tax Management

* International Transfer Pricing

* International Credit Management

Potential Issues and Challenges in search for sufficient funds:

* Uncertainties from financial resources:

* Financial support by members of the buy-out team: This has to be agreed by contract. Otherwise anyone in the team can drop out of this promise.

* Sales of unwanted subsidiaries: There is no guarantee that these subsidiaries will be sold. And if yes, the sales price could be low and not sufficient enough

* Delayed payments to the Monsaldale Family: It is not agreed yet, and the payment amount is also unknown.

* Debt financing:

In case of the debt financing, the company needs to find first an adequate creditor for their loans and need to consider...