...Strategy Berry’s Bug Blasters is a privately held business and wants to expand its operations. The business is considering three options for moving forward with the expansion plan. The first option is going public with an IPO, or Initial Public Offering. The second option is to acquire another similar business within the industry, and finally the third option is merging with another organization. All three of these options are viable choices and this paper analyzes each options for its viability and suitability to needs of the business. The paper identifies the strengths and weaknesses of the each approach, and well as the opportunities and threats posed by each option. The analysis begins with the strengths of the IPO, merger, and acquisition. Strengths of an IPO, Merger, or Acquisition Berry’s Bug Blasters could effectively expand its organization very rapidly through an initial public offering (IPO). An IPO would position the organization, after an underwriting process, to go from a privately owned company with modest annual revenues of $3.2 million to a public company that could put Berry’s on the Bug map. The strength of an IPO for Berry’s Bug Blasters would be in the cash generated by selling shares to the public. This additional capital could help the organization to expand into new territories; more readily compete within its industry, and even become a household name. A listing on a major stock exchange such as the NYSE would...
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...is all the hype about? What is an IPO, how does it work, and will a publicly traded Facebook affect how we use the social network on a daily basis? Here's a quick guide. WHAT EXACTLY IS AN IPO? When a privately owned company makes an Initial Public Offering, it means they're moving to be publicly traded on the stock market for the first time. That means that anyone can buy stock in the company and own a portion of it. Ads By Google Online Trading Plus500®: APPL, Ebay, HP Commodities, No Fees! www.Plus500.no Bilforsikring -Sjekk pris Nemi Bilforsikring testvinner i VG. Sjekk din pris på bilforsikring her neminordvest.no/bilforsikring UK Fixed Income Aberdeen Managed UK Fixed Income Assets. Learn More. Aberdeen-Asset.NO Going public can help a company raise significant capital if a lot of people want to buy its stock. It also means that the company has to publicly disclose details about its finances, like its earnings, that it previously kept private. WHO DECIDES THE VALUE OF AN IPO? An investment bank determines how much money the company can expect to make on the stock market based on a number of factors, from the health of the economy to how popular the company's product is expected to be in the future. The initial valuation is always a bit of a gamble, since the stock has never been traded publicly before, and analysts can't look at past behavior to figure out how it should be priced. Morgan Stanley is expected to spearhead Facebook's IPO filing...
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...Get the inside scoop on investment banking careers in the Asia Pacific region! Read this extended excerpt of the all-new Vault Career Guide to Investment Banking, Asia Pacific Edition and get the inside story on investment banking careers, including: • An inside look at corporate finance, sales & trading, research and other major functions at investment banks. • An oveview of equity and debt markets in the region • A discussion of industry trends and corporate culture in Asia Pacific • Days in the life of investment bankers in Asia Pacific This PDF is an excerpted version of the full 198-page guide To get the complete guide: • Purchase your own print or e-Book version of the guide. Go to www.Vault.com/Asia. • More than 900 universities and MBA programs worldwide subscribe to the Vault Online Library, providing more than 4.5 million students worldwide with access to Vault's guides and career information. Contact your career center today to ask about access to the Vault Online Career Library. ABOUT VAULT Founded in 1996, Vault is the leading global media company focused on careers. With offices in North America, Europe, India and Asia, Vault provides graduates and young professionals worldwide with insider information on careers and education through its award-winning web sites and career guides. CAR E E RS VAU LT CA R E E R G U I D E TO INVESTMENT BAN KING A S I A P A C I F I C E D I T I O N INVESTMENT BANKING JUNG B. LEE, TOM LOTT and the staff of vault ...
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...Introduction New Harvest Coffee Roaders is a brand which sells coffee. The firm “was founded in 2000 by RikKleinfeldt and Paula Anderson” (Retrieved from http://www.newharvestcoffee.com/about-us/who-we-are). They are located in the downtown of Providence, Rhode Island, in America but work all over the country. The main goal of this company is to offer high quality product produced in a sustainable process. To that, they firstly worked a lot with Fair Trade which was its main supplier. But as it “doesn’t really fulfill [the brand’s] objective” (Contemporary Business, Boone and Kurtz, 2010, p 565), New Harvest stopped working with them. Actually, the main point for New Harvest was they wanted to be able to select their product in view to control the quality of their final offer. And that was impossible by working with Fair Trade. So New Harvest developed its own sourcing way. That impact on many factors about the firm’s product such as the price but also the quality. Those both factors increase. The price due to the fact that suppliers weren’t helped by Fair Trade and the quality because New Harvest started to select and choice the coffee they bought. This way to sourcing the coffee is totally not concerning by the New York Stock Exchange regulation as prices didn’t follow the settlement of the “Big Board”. They are fixed after a negotiation between farmer and New Harvest according to the laws of supply and demand. The coffee is no longer considered as a commodity. New...
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...foreign foods as well as spirits to its customers, began in mid-1998 and within nine months was already making a profit. Kudler Fine Foods opened two additional stores, one in 2000 and one in 2003 (Apollo Group, 2011). Because business has been so good, management is looking at another possible expansion and is seriously considering the options available. In order to make the most beneficial as well as profitable decision, management must take its time and carefully weigh all its options before selecting the appropriate approach to expansion. The IPO approach In order to expand, management for Kudler Fine Foods must choose between three approaches. These three approaches include offering shares of its organization to investors and the public with an IPO, acquiring a similar organization within its industry, or merging with another...
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...1933 Act and the society by using the concept of libertarianism and the “vail of ignorance” of Immanuel Kant. In the second section, I examine the Securities Act of 1933 by using the accounting skill to argue that 1933 Act did not prevent the inside trading and financial statement manipulation. History of Act: public policy prescription: In the absence of the securities laws, a business firm could basically decide the stock price of their privately-owned company without any governmental supervision and, thus, be free to act with impunity in defrauding both the company and the public. This is the reason the stock price crashed down on “black Friday”. Securities Act of 1933 is in ascertaining that a firm’s disclosure is as accurate as possible, which makes the securities market more fair and transparent in its effort to control fraud perpetrated by unscrupulous business owners on a gullible public marketplace. Market failure: Business’ goal is always for the greatest profits, by taking the advantage of whatever ways they can use, such as fraud. In 1929, business people took the advantage of the absence of the securities laws to defrauding both the company and the public. Trace its implementation: Securities Act of 1933 is implemented by Securities and Exchange Commission(SEC), an independent quasi-judicial regulatory agency that was established by President Franklin D. Roosevelt after the great depression.The main goal of SEC is to regulate the stock exchange, the companies...
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...gaining firms. During the summer 2007, this active market has taken a turn to the worse. The gaming market was split into three customer segments (day trippers, multi-night visitors and VIPs). Each of these customer segments were of different nature. Background of Macau Macau was the only place in China where gambling was legal. In 2006, for the first Macau displaced Las Vegas as the worlds gaming market. Because Macau’s $6.98 billion in gaming revenue exceeded Las Vegas’s $6.69 billion revenue. Macau’s gaming revenue would exceed $15.5 billion in 2010 whereas Las Vegas expected to generate only $8.67 billions. The market in Macau was sensitive to the decisions made by government in the region. IPO offering When the Melco announced initial public offering, MGM showed its willingness to pay $8 billion for Melcos equity. But they did not disclose that how MGM would finance the deal. But the problem with IPO is that it is a long, complicated process that can create a trouble. Takeover offer MGMs interest...
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...owned by a small number of company members and they will not offers their securities to the public. On the other hand, a public company is a company which owned by at least seven members and they offers their securities to the general public. However, 'Listing' is a process that a private company converting into a public company which the shares can be traded on stock exchange (Bursa Malaysia). Once the private company transformed successfully, the company is no longer owned by the individual and entrepreneurs but a group of shareholders (Asia Pacific Stock Exchange, 2012). Normally, company whose plans for listing or further growth will use an initial public offering (IPO) as a method to generate capital needed for expand. IPO is the first sale of stock to the public by a company. (CNBC, 2012) On the others sides, private company whose plan to go listing is for several purposes or benefits. For instance, the public company able to raise their capital by using IPO, simultaneously, a success IPO is an accelerator towards your company expansion. According to Bursa Malaysia listing statistics, in year 2012, there are 14 company whose listing in Main Market and 3 company in ACE Market. Recently, Tune Ins Holdings Bhd (Tune Ins), which is set to bet listed on the Main Market of Bursa Malaysia in February, 2013. (thestar, 2013) Tune Ins has publicize its IPO of 37.59 million shares to the public. On June 2, 2011, Groupon announced to the financial markets that Groupon was planning...
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...| JetBlue Airways | | Valuation of an IPO Case Study | | JetBlue Airways | | Valuation of an IPO Case Study | 2014 Ivan McClure, Imtiaz Saboor, Vanessa Lopes, Gilberta Pjetri 2014 Ivan McClure, Imtiaz Saboor, Vanessa Lopes, Gilberta Pjetri TABLE OF CONTENTS * History * Advantages & Disadvantages of an IPO * IPO Process * Weighted Average Cost of Capital (WACC) * Similar Company Analysis * Discounted Cash Flow Analysis * Final Decision History David Neeleman, an experienced entrepreneur in airline startups, announced that JetBlue would bring “humanity back to air travel” on July 1999. He was convinced that his commitment and innovation would keep the planes full and moving despite the fact that 87 new-airline startups had failed in the last twenty years. An impressive new management team and growing group of investors shared Neeleman’s vision. JetBlue’s management team included David Barger, former vice president of Continental Airlines. Neeleman received strong support in funding from high-profile firms such as Weston Presidio Capital, Chase Capital Partners, and Quantum Industrial Partners, and quickly raised $130 million. Neeleman’s goal was to “fix everything that sucked about air travel”. His strategy was built on that goal as well providing the passengers with new aircraft, simple and low fares, leather seats, free Live TV at every seat, pre-assigned seating, and high quality customer service...
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...of each approach, and the opportunities that each one has to give. Finally, the last thing discussed is the globalization on financial decisions, factors of the exchange rate risks, and the mitigation of exchange rate risk. The one thing that Huffman Trucking Company has is strength and they can use this if they decide to go public through the IPO. By doing this Huffman Trucking will be able to raise extra capital for the company. This will then increase the liquidity of the stocks and it will increase the revenue to invest or it could extend the business. This will give the Huffman Trucking Company an opportunity to market the company to the public to extend the company’s service. This strength is to be able to limit their competition. Therefore, this will increase the business’s revenue and this gives them a bigger control, which is why a lot of companies look for other companies within their manufacturing. According to “Benefits of a Merger or Acquisition” (2013), by obtaining a business in the same manufacturing would get more market shares, and the business would obtain excellence team that already has the information of the business. Going public will...
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...Integrative Problems and Virtual Organization Strategy Paper Meline Constantin, Angela Currier, Brett Kinney, Nicole Mcclelland, James Schmidt, and Kevin Sult FIN 370 June 20, 2011 Cheryl Heath Integrative Problems and Virtual Organization Strategy The medical world has started to join corporate America. Large companies run multiple hospitals and medical facilities across the world and it puts smaller community hospitals in a position that is not always beneficial. Patton Fuller Community Hospital is no exception. They have decided to expand to help meet the demand of the public and to help their hospital make profits necessary to keep the facility running. However, there are some decisions that need to be made. The hospital could have an IPO or could merge or be acquired by another hospital. To decide which option is best, Team B will weight the pros and cons of each option by showing the strengths, weaknesses, opportunities, and threats created with each option. Strengths of an IPO, Acquisition and Merger The strengths of an IPO in a hospital would be to raise more capital for PFCH to use for their various corporate purposes such as working capital, acquisitions, and marketing, to name a few. With PFCH taking advantage of an IPO we can take advantage of new larger opportunities that can start building toward incorporation and statewide expansion. IPOs also allow the company to access their capital more rapidly, and are...
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...requirements. If a company has two or more owners, it forms a partnership. Owners of partnership companies are also liable for all the debt. However, limited partnership allows limited owner liable to the amount he invested. Partnership is subject to less regulation and tax but harder to raise capital than corporation. Corporation is the only legal entity that is separated from owners and managers. Even though it is complicated to form a corporation, and corporation is subject to double taxation, but its advantage of unlimited life, limited liability and most importantly the ability to transfer ownership makes it the ideal organizational form for fast growing companies. (c) Initial Public Offering (IPO) Corporations can continue to grow through external financing, which sells stock to the public investors...
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...A Case Study The Initial Public Offering of Williams Communications Group, Inc. William B. Elliott* Department of Finance Oklahoma State University College of Business 224 Business Stillwater, OK 74078 405.744.8639 (voice) 405.744.5180 (fax) elliowb@okstate.edu Lindsay Lewellen First Union Securities Asset Securitization Division 1 First Union Center 301 South College Street Charolotte, NC 28288-0943 704.383.7991 March 2002 * Corresponding author We would like to thank Jack McCarthy, Scott Schubert, and Betty Simkins for their valuable comments. A Case Study The Initial Public Offering of Williams Communications Group, Inc. Abstract The Williams Companies, Inc. has decided to divest a portion of their holdings in Williams Communications Group (WCG), a wholly-owned subsidiary. WCG is a high growth business operating in the telecommunications sector. This case focuses on valuation of a telecommunications company and the process of taking a wholly-owned subsidiary public using an equity carve-out. Students are asked to estimate a value for this offering. This case is most appropriate for undergraduates, however, it could be a used as an introductory case for MBA students. INTRODUCTION Mr. Jack McCarthy, Chief Financial Officer (CFO) and Senior Vice President of The Williams Companies, Inc. (WMB), sat in his corner office overlooking downtown Tulsa and pondered the firm’s upcoming...
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...Business Priorities: 1. Financial Priorities CanGo should sustain and possibly increase their productivity outlook at the same time to attract more investors when they open their initial public offer to generate more capital in shoring up the expansion venture. This would require more resources to be committed. 2. Time CanGo should allot enough time for everyone in the company to enhance the success of their expansion. They should set realistic deadlines for all tasks and goals for completion to minimize any possible negative effects of risks due to not having enough time to provide quality outcome. 3. Manpower with Skills CanGo has to hire additional employees or set-up third party contractors to assist and provide additional help, skills and experiences in meeting workloads generated by the expansion venture if needed. This will alleviate any risk that can be caused by labor shortages. 4. Sources for Games, Video and Audio Streaming CanGo has to gather and secure contracts and licensing from various sources for all their games, video and audio products that will be advertised and sold to their global web customers appropriate to their culture, country of origin and social interests. 5. Additional Infrastructure and Equipment CanGo management has to perform a good thorough expansion plan to analyze whether incorporating more equipment and infrastructure is necessary for the expansion to fully utilize limited resources. Global Sales: 1. Lack...
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...talented value driven management teams from those companies that do not reflect these characteristics. As VC’s typically encounter high risk upon investing, they also demand a high return that often comes in the form of a sell out of shares after an IPO. Putting a lot of effort on sustaining the key characteristics of the firm is therefor valuable for the VC’s as the publics view on the firms quality determines the return generated. Investments bankers: Assist unlisted companies in introducing them to the public in an initial public offering, thereby including good and profitable financial advice to its clients, where a crucial element is to guide on when there is a good time to issue shares to the public, and when there is not. Further the investment banker price the offerings, underwrite the shares and marketing the companies to the investors. The main point is to help getting a fair deal for the client. Sell-side analysts: Gather information on public firms to write investment research that will be distributed to clients. These tasks include forming relationships frequent dialogs with the management of public companies and come up with buy or sell recommendations based on the analysis and trends in the market. Buy-side analysts and portfolio managers: As the sell-side analysts, the buy-analysts do research in listed firms for funds, insurance and hedge companies on behalf of their investors, come up with buy or sell recommendation and try to win the portfolio manager...
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