The use of internal Capital Markets based on the example of Next & New Look

Scientific Study from the year 2018 in the subject Economics - Finance grade: 80% University of Strathclyde language: English abstract: This report tries to examine New Look's decision for the new acquirement by analysing the firm's performance in the last five years internal capital markets (ICM) corporate governance and ownership structure as well as advantages and disadvantages of acquiring a firm backed by a PE investor. Finally the last element of the analysis is the evaluation of the benefits and costs of New Look as a standalone firm if Brait would undertake successfully an initial public offering (IPO) process to exit from New Look. In the conclusion we provide a recommendation for the exit strategy of Brait from New Look if the objective is either to maximise the return to the Limited Partners (LPs) or Brait acts in the best interests of New Look.New Look Retail Group Limited (New Look) is an international multichannel retail brand offering value-fashion for women men and teenage girls. The company has more than 900 stores which are mostly based in the United Kingdom (UK). Its e-commerce grew sustainably over the last years and serves customers in 120 countries worldwide. Since 2015 New Look is owned by Brait Societas Europaea (Brait) a private equity (PE) firm.It is now rumoured that the UK based retailer Next Public Limited Company (Next) is preparing a takeover bid for New Look.