- Daistruk is in roundland only and would have minimal exposure to currency risk
- If they expand, they will need to consider it
- If they generate cash in another currency, they will need to convert it to R$ as that would be their base currency
- Long term profitability will be affected by ex. movements
- Size of organisation is important
- Large org. can reduce costs and prices
- Risk that lower costs = lower quality
- Confidentiality
- Integrity
- Availability
- Clientele effect (expect dividends)
- Signalling effect (Dividends signals to market how well company is doing)
- Issue new shares and give them to acquired company shareholders in exchange for acquired company shares
- Could be 1-1 depending on valuation
- Product may become less desirable/fashionable
- Can reduce sales