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IPOs, Mergers and Aquisitions Strategies

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A) Why do firms go through IPOs and what are the benefits of an IPO and the costs or disadvantages over other forms of financing?

b) One growth strategy is through mergers and acquisitions, why would a firm choose that strategy?

c) In today's present economic environment, what conditions make acquisitions attractive and what conditions make them difficult to do?

d) If you were a CEO, how would you decide whether to make acquisitions in the current environment?

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The solution discusses IPOs, mergers and acquisition strategies.

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(a) Firm go through IPOs to finance capital for its project. For company the project's cost in million and billions, due to this it becomes risky and difficult for the company to raise such a huge amount of funds through debt or do self financing by the owner. Such a large amount can only be raised through people at large so for this companies issue IPOs to raise fund in the form of share ...

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  • Bsc, Madras University
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