International Corporate Finance and Financial Markets - Essay Example

Even the companies considered to be the biggest bet in the international business arena are going down with bankruptcy. Several others have asked their respective governments to provide a bail out for their failing financial situation. In such a scenario so filled with uncertainty and risks, it becomes extremely important for us to understand the complete scope of international business, the mergers and acquisitions, the bail outs and special schemes provided for the corporate finance by the government and the likes of it all.

In the sections to follow in this paper, we will discuss all of the key points spanning the arena of international corporate finance and financial markets. International investments have increased manifold ever since the dawn of the new globalized world came into being. Every day pours forth a new array of mergers and acquisitions or overseas investments. Horizontal acquisitions, merger of two companies or any other form of investment – these all make for the most important asset of any economy – the movement of the assets.

However, there are several times in the history of these mergers and acquisitions or investments where we see that a particular deal went through a favorable time with huge profits and earnings, however, declining in the end. This section is about why these investments follow a pattern of growth and decline. However, before we proceed, let us understand a few factors in the whole task of the investments and merger and acquisitions process. There are several types of mergers and acquisitions. A merger, however, is within the two companies of equal stature or value.

Meanwhile, an acquisition is between two companies where the acquiring company is of a higher value than the company acquired. Let us now take a look at the process that takes place when two companies undergo a process of M/A (merger and acquisition). Once the M/A is organized for, the acquiring company