Share
Explore BrainMass

Strategic Corporate Finance: Type of IPO for Avaya

Hi, can you assist me with a background paper on what type of IPO Avaya should use. I need to decide between a traditional IPO or an online auction. I need to conduct an analysis and based on the findings recommend an IPO to Avaya's executives. Please add 2 references that I can revert back to for understanding and clarification.

Some issues to consider in answering the above include:

i) The type of investors Avaya is likely to attract.

ii) The lessons learned from Google and Morningstar from their auction IPO's.

iii) Advantages of each type of IPO.

iv) Costs and risks of each type of IPO.

Solution Preview

Introduction:

Avaya Inc. is a private corporation that specializes in computer networking, information technology services and telecommunications. Within the business communications systems industry, Avaya is a global provider of the same, having its headquarters in Basking Ridge, New Jersey. Being within the business communication systems industry, the firm provides contact centers, unified communications, networking as well as video products solutions and services. The video products in this case include integrated software and hardware (Avaya, 2011).

The type of investors Avaya is likely to attract:

Avaya primarily is within the information technology industry. Having a range of services as well as products to offer within this field, the type of investors that it is likely to attract would be technology savvy investors interested in intelligent communications solutions. Such investors would be deemed to be interested in Avaya as they would probably perceive the company to be one that offers such technology solutions in the aiding of companies in the transformation of their respective businesses in achieving marketplace synergies and advantages. Investors in Avaya would also be interested in the scope of grip that Avaya has within the marketplace. With support to more than a million businesses worldwide, Avaya investors would be those wanting to have a piece of the international market from an investment point of view (Avaya Enters into Merger Agreement, n.d.). It is also known that as a result of many customers looking to Avaya for core enterprise telephony solutions, and then investors within the telecommunications industry would most likely be attracted to Avaya for investment (Parker, 2011).

Initial Public Offerings (IPO's):

Also known as a public offering, an IPO is the "first sale of ...

Solution Summary

The solution is given in the form of a mini essay of 1129 words with 8 references detailing the types of investors Avaya is likely to attract, traditional vs. auction-based IPOs, lessons that can be taken from Google and Morningstar's auction-based IPOs and a final recommendation for IPOs.

$2.19