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IPO, acquisition or merger

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The organization is faced with three options to expand its operations
a. they can go public through an IPO
b. They can acquire another company in the same industry
c. they can merge with another organization

In the paper compare and contrast the three options and make a recommendation as to which strategy the selected organization should choose. Be sure to address the following in the paper.
1. strengths of each approach
2. weaknesses of each approach
3. opportunities of each approach
4. threats of each approach.

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Solution Summary

A private company can expand by IPO, acquisition or merger: contrast the 3 options

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They can go public through an IPO

The key advantage of going public is the access to large funds from general public investors as equity capital. Further, listing of the shares will help the company in getting a fair valuation, which will increase day by day based on company's performance. A public company is also viewed with increased trust. Further, IPO will raise the visibility of the company.

Source: http://sonora.smallbusiness.findlaw.com/banking_financing/source/business_events/be21_2prosncons.html

They can acquire another company in the same industry

The acquisition in ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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