Share
Explore BrainMass

IPO, Merger, Acquisition

Kudler is a gourmet/fine foods store which is a privately held company that wants to expand its operations. Kudler has three options for expansion; IPO, merge with another organization, or acquire another company in the same industry.

Need 300 to 500 words on the following:

What threats are associated with each option (IPO, merger, acquisition)?

Solution Preview

Let us take each option one by one.

The major threat associated with IPO is that owners of the company will dilute their stake in their company or reduce their holdings by selling their shares to public and institutional investors, thereby losing some control over the company. They will also have to become answerable for each action affecting the company to the shareholders and investors of the company. Further, public company have to face stringent regulations pertaining to ...

Solution Summary

Kudler is a gourmet/fine foods store which is a privately held company that wants to expand its operations. Kudler has three options for expansion; IPO, merge with another organization, or acquire another company in the same industry.

$2.19