International Finance Paper






International Finance Paper

FIN/419
June 1, 2015
Maria Johnson


International Finance Paper
Intro (Kaitlin)
Explain how the global investment banking process has assisted the organization.
Throughout the years, Apple Inc. has grown into one of the most recognizable international brands in the world. This accomplishment didn't happen overnight. Countless time, energy, and effort went into growing the company and entering into new markets. A global investment bank is an essential tool for Apple’s continuous growth internationally. A global investment bank can be defined as “a financial establishment that helps businesses increase capital, deal with securities, and administer corporate mergers and acquisitions” (Kautzman, 2011). Investment banks act as an advisor; catering to the very specific financial needs of a company.
An investment bank would have been crucial in the beginning stages of Apple’s growth in foreign markets. An investment banker would be in charge of raising the capital, ensuring the financial instrument used will provide the maximum return, and while following all regulatory requirements. A company can raise capital in a couple of different ways; from private investors, issuing bonds, or selling common stocks. An investment banker would provide their expertise to ensure that Apple raises enough capital to expand into new markets. It’s safe to say Apple Inc. has successfully used investment banks to entered foreign markets. As of 2014, 62% of Apple’s total net sales came from international sales ("Apple Inc. - Annual Report", 2014). Behind the US, Europe and China are the largest international markets which purchase Apple products.
Investment banks also assist with mergers and acquisitions (M & A). Mergers and acquisitions are strategic moves which upon completion help Apple Inc. become an even stronger and more viable company otherwise. One main goal of an M & A is to research the company to be purchased. The purchase of any company should mesh with the Apple's existing strategic plan. The investment banker will then advise Apple’s management team on how much the company is worth, and structure and negotiate the deal in a way that is most favorable for Apple Inc. Apple Inc. has merged and acquired some different US & International companies; with the goal of making their products and services better. Apple's business philosophy is to acquire small companies that can integrated easily into existing company projects ("List of Mergers and Acquisitions by Apple", 2015). The most notable acquisition of late would be Beats Electronics. Beats Electronics offers trendy headphone and an online music streaming service. Through the help of an investment banker, Apple Inc. structured and negotiated a deal to purchase this company for $3B. Once the acquisition was completed, it vastly improved the quality of Apple’s existing iPhone & iTunes services.
Explain how regulatory bodies affect financial decision making. (Robert)
Identify and evaluate contemporary issues in international financial management. (Shaunta)
Conclusion (Kaitlin)



















References
Apple Inc. - Annual Report. (2014). Retrieved from http://investor.apple.com/secfiling.cfm?filingid=1193125-14-383437&cik=#D783162D10K_HTM_TOC783162_11
Kautzman, K. (2011). What is Global Investment Banking? Investigating The Basics. Retrieved from http://www.brighthub.com/money/personal-finance/articles/37294.aspx
List of mergers and acquisitions by Apple. (2015). Retrieved from http://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Apple