Naturally
to follow a decision to invest in a venture, is how to finance
the project. It is helpful to separate investment and financing
decisions even though there are similarities in the criteria for
making them. These similarities however distil into the net present
value computation. Projects are financed by raising cash through
share-issues or through debt-capital. The mix of these options
affect the rights over the entity. An owner manager who has no
debt will have complete cash-flow rights and control-rights. As
soon as the company borrows, then these rights are split up and
reallocated between the owner and the lender. MGI Malta will assist
your team in evaluating the effects and feasibility of the different
options of raising finance.
MGI Malta
• Zabbar Road 381 • Fgura PLA16 • Malta
T +356-2180 2044 • F +356-2167 5418 • E