Applications in Corporate Finance (Buidalot from a corporate finance Essay

Applications in Corporate Finance (Buidalot from a corporate finance perspective) - Essay ExampleThe caller-out lacks cohesion in terms of pulling the efforts of different subsidiaries together and this is the main reason why it is performing poorly. Therefore, there atomic number 18 certain issues that should be taken into account by Buildalot in club to improve its operations as going to be shown in the recommendations section of the report. 6 Market economy 6 Market rivalry 6 Equity capital structure of the familiarity 7 PEST analysis 7 major verbalism projects 8 Office building construction 9 House building construction 10 Business operational issues 11 mayonnaise project issues 12 Corporate social responsibilities 13 pecuniary statement analysis 13 Trend analysis 13 Ratio analysis 14 Recommendations 16 Referencing 18 Bibliography 20 Introduction This report deals with business analysis of Buidalot from a corporate finance perspective. This is an Ireland establish Const ruction Company and it has been experiencing cash flow difficulties due primarily to the slow selling of households and offices in the Mayo development project. This study will assess the major issues affecting different sectors of business in this construction family. A detailed rig out and PEST analyses of the situation of the company will be conducted to evaluate the causes of the problems it is shortly facing. This study will also evaluate the financial situation of different projects being undertaken by the company through business strategy techniques and financial strategy techniques like re-forecasting, cost of capital, net present appreciate and business valuation. Then appropriate recommendations will be provided at the end of the report in order to effectively deal with the issues raised. Background of the company Buildalot is a 50 year old construction company and it is based in Ireland. The company was incorporated 30 geezerhood back as a grouping of companies. Thi s consists of different wholly owned subsidiaries that operate in different segments of the construction industry. The three major segments that are the main focus of the companys business include the following major construction projects, house building construction and office building construction. The subsidiary that operates in major construction projects is based in different countries but it mainly focuses on Ireland. Office building subsidiaries undertake projects related to office constructions. It operates in Europe and Middle East along with successful penetration in the home country of Ireland. The company House building subsidiaries also operate internationally. The company initially used to engage in residential house building in Ireland and it started construction of these major segments after incorporation about 30 years ago. Situation analysis (SWOT) Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors ar e regarded as either opportunities or threats. The aim of performing a SWOT analysis is to critically prove all the internal and external factors that may affect the operations of the organization (Strydom, 2004). The table below summarises the SWOT analysis for Buildalot. Strength Weakness 1. The current ratio of the companys working capital is broad(prenominal) 2. The fixed asset turnover of Buildalot is also high 3. Employees are able to deal with