Hotline:
021-64271926
021-64271927
International Finance Advisory
| Financing type
|
Advantages |
Disadvantages |
| IPO |
- Get plenty of permanent capital with no maturity; don´t need to pay back, and no fixed dividend burden.
- Changing financial status, without extra liability added; improve the asset/liability ratio
- Decrease financing and assurance of shareholders
- Upgrade company position and image.
- Easy to change stocks into cash
- Improve financing ability
- Improve credit status from customers and suppliers
- Use stock option to improve morale of the employees
|
- High expenditure of IPO
- Pressure from inside and outside investors caused by excel the achieved growth rate.
- Accepting strict inspection from the public and disclose operational and financial information, which may lead to lose advantage in market competition.
- Decrease control over the company and may face the danger of losing control or vicious M&A.
- Necessity to follow the regulation made by regulatory commission strictly.
|
| Introduction of Strategic Partner |
- Build reputationĄŁ
- Shape producing ability quickly
- Decrease financial risk
|
- Easy to arose dissension of property rights, not favor for absorbing further investment.
- High capital cost
- Dispersal of the control right
|
| Bank Load |
- Quick, low cost and high flexibility
- No decline of EPS
- Financial leverage effect
- Interest expense, deducted before taxation, depress income tax
- No dispersal of the control right
|
- High financial risk
- Many limitations
|
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Tel:021-64271926 021-64271927 Fax:021-64283896
