an initial public offering (IPO), various debt-funding alternatives; and, the possibility of a strategic partnership. it must be clear to the customer how you are adding value to its business if you want this recommendation to be executed and get paid for it.

What are the business circumstances of this company and how do they translate into the need for more or less cash-flow flexibility? Does the existing capital structure—assuming the company can’t change its business practices—provide the company with the cash flow flexibility (more or less) that it wants? Why?
In terms of the possible alternatives you are considering which would you recommend to the company—and why? Make your pitch! In so doing, consider using the cost versus flexibility framework.

Business Circumstances; Flexibility
Prada currently requires a significant amount of capital both to refinance debt that is maturing in the next six to twelve months and the planned financing of growth in the Asian (especially Chinese) markets. Since financial markets aware urgent need Prada, are to raise capital, it is important that the Board of Directors of a credible strategy to increase the required minimum capital of 1 billion? to develop. Although the press was suggesting that Prada is to do an IPO, the company has tried this several times in the past without success, mainly because of poor timing (9/11, the SARS outbreak and the ongoing global financial crisis and the European sovereign debt crisis).
China represents a major market for global luxury goods brands like Prada. As beyondbrics recently pointed out, the country’s luxury goods sector is expected to be the fastest growing in China over the next decade.

Existing capital structure

Recommendation:
Prada, which has scrapped an IPO four times in the past 10 years, might raise more money having a primary listing in Hong Kong than in