Running Head : BUSINESS LAWInternational Business LawNameCourseInstructorDateIntroductionAsset acquisition is non a new strategy in the modern communication avenue world Most furrowes use this as a come downer stalk to achieve its long term objectives The primary goal is normally to maximize the sh beholders wealth . Even the past acquisitions take away a good deal failed to add signifi earth-closettly to the value of the getting firm valueThis has loosely been delinquent to poor preparation garment by fact of certain contingencies such as the permute in buyers purposes (Miles br R .E . and Snow , C . 1978 . This asshole have a negative effect on twain firms in their quest of business . This calls for a proper planning sooner whatever acquisition strategy is undertaken . Such proceedings are excessively subject to the legal rules and regulations of their countries of incorporation and operationsAntiques R US Inc entered into a verbal agreement with Yankee Antiques which is an American firm for the bribe of a desk used previously by one of its employees before retirement so as to resell it for a enceinte profit but the tar instituteed client refused to buy it on claims of genuineness and the supplying firm has refused to march on return of the desk and instead press on establishmentI as the vice president of Antiques R US Inc . have been instructed by my castigate , who is the president of our federation , to overlay this job and furnish him with a report about how this problem can be handled as Yankee Antiques is an important provider to us and hence we essential keep this cordial business relationship .
The problem is due to the fact that our supplier has refused to accept the return of the desk and instead insists on payment while my boss does non want to pay for thee desk because of its authenticity and that our comp any is having a severe bullion flow crisis hence lack of money to payIn this , various strategies go aside be evaluated and the best strategy elect . Various strategies can be identified . These include payment through the digit rather than cash , merger , contractual affiliation , variety and reselling and acquisitionIssuance of securitiesSince our company is having a cash shortfall , paying in terms of securities will mean that our cash position is not affectedThe suppliers would also be willing to induce a carry in our company due to great performance . early(a) benefits such as wide decision making and find to loan facilities will also be available as a result of this and . The biggest disadvantages of this strategy are the dilution of ownership and obscure decision making process because the make sense of parties to be consulted has increasedAntique R US Inc . is a small company which is in private owned and hence this share issue will have associated costs . These shares have to be issued in congruity with component 4 (2 ) of the securities Act of 1933 for a private issuance of securities without any public solicitationThe supplier would also be...If you want to get a full essay, order it on our website: OrderCustomPaper.com
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