a) Analyse the current forms of finance available to the Fusion Group.
The main source is Unit 3, Sessions 1-3.
Question 1 (a) requires you to analyse the current forms of finance available to the Fusion Group. You should approach this question by discussing the advantage and disadvantage of different financing options available for this type of business; short and long-term sources. You may want to comment that Fusion is currently undergoing a fundraising round to finance acquisitions/redevelopments in the property business segment. There is no need to consider appendices 8, 10 and 11 in analysing the projects’ finance requirements
Please make sure that you use only the text book for resources and the case study for the information and reference these.
Please include justification and downside, suitability and ease of access for the finance options
Some of the finance options i have highlighted are retained earnings, debt factoring, bank loan, private equity/ipo
This is guidance from tutor.
Analyse the current forms of finance available to the Fusion Group.
Consider looking at Fusion Group’s long-term debt finance and long-term equity finance. Look at Group’s balance sheet. What is Fusion have as a total of loan value outstanding? Fusion is currently undergoing a fundraising round to raise a further £250m in debt finance, to finance acquisitions/redevelopments in the property business segment. What is the ordinary share capital? Also, consider short terms capital, e.g. Fusion Group has an overdraft facility. What is the position of short term borrowing?
