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Kudler Fine Food IPO

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Select a Virtual Organization using the Kudler Fine Food Assume your organization is privately held, wants to expand operations, and is faced with three options for expansion: issuing stock, getting a loan or issuing bonds.

Indicate why going public through an IPO would be best and indicate:

o Strengths
o Weaknesses
o Opportunities
o Threats

1.061 words plus references

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This answer provides you an excellent discussion on kudler fine food

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â?¢ Select a Virtual Organization using the Kudler Fine Food Assume your organization is privately held, wants to expand operations, and is faced with three options for expansion:

o Going public through an IPO
The organization selected is Kudler Fine Food. The three options are a bank loan, a bond issue or going public through an IPO. Since Kudler Fine Foods is a relatively new company going in for a bank loan or bonds would mean high financial risk. Payments of interest and repayment would mean a drain on the cash of Kudler Fine Foods. Further, a default can lead to bankruptcy. On the other hand an IPO will mean Kudler Fine Foods becomes a public company gets respect and is not compelled to make dividend payments. So there is low financial risk and the business can grow fast.

compare and contrast options and make a recommendation about which strategy the organization must choose.
â?¢ Address: 200 words each
Going public through an IPO
o Strengths
The IPO can get Kudler Fine Foods cash, property, ore services. The shareholders get ownership rights but the management rights still remain with Ms. Kathy Kudler. There are constraints of cash flows and these can be solved through IPO. The IPO means Kudler Fine Foods achieves a reputation and esteem. This will help increase her sales. Further, the internet business of Kudler Fine Foods will get a boost if Kudler Fine Foods goes public. Kudler Fine Foods does not have to pay in cash every time there is an interest payment to be made. ...

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