Copyright © 2007 Pearson Addison-Wesley. All rights reserved. Copyright © 2007 Pearson Addison-Wesley. All rights reserved.
Chapter 15
Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 1-2
Sourcing Equity Globally
• To implement the goal of gaining access to global
capital markets a firm must begin by designing a strategy that will ultimately attract international investors.
• This would mean identifying and choosing alternative
paths to access global markets.
• This would also require some restructuring of the firm,
Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 1-3
Designing a Strategy
to Source Equity Globally
• Designing a capital sourcing strategy requires that
management agree upon a long-run financial objective and then choose among the various alternative paths to get there.
• Often, this decision making process is aided by an early appointment of an investment bank as an official
advisor to the firm.
• Investment bankers are in touch with potential foreign investors and know what they currently require, and can also help navigate the numerous institutional and
