Initial Public Offering Essay

Submitted By sweetprayline

Words: 403

Pages: 2

Open Document

INITIAL PUBLIC OFFERING
A Step by Step Process

WHAT IS INITIAL PUBLIC OFFERING
• IPO is short hand for Initial Public Offering
• Private company with private stockholders to Public company with “outsider” stockholders • 3 part Journey to Success

WHY MAKE THE TRANSITION?

Notoriety

Leverage
More Money
Better Managers

PRE-IPO

Restructuring

Staffing

Review Company

*Start the ground work for going public *Bring in management familiar in leading the change

*Make sure any potential growth for the company is reasonable and profitable TRANSITION

Let the Professionals
Handle It
*Hire a well known, accredited company to handle the transition.
The public will be examining everything! Beat Expectations

Persevere

*Exceed previously made transitioning goals.

*Remember that change takes time. Investors are cautious with their money and they want to know you are successful.

POST IPO

Fulfill Promises

Execute Business Plan

Settle In For The Long
Haul

Make sure all promises made to staff and stockholders are held accountable Make sure all goals are still being met and business ethics are still visible

Buckle down and show that your stock is valuable and success in long coming

COMMON TRANSITIONING CONCERNS
• The Cost of Going Public
• The Time it Takes to Go Public
• Failure To Succeed
• Failure To Keep Stockholders Informed Of Company Operations

CAUTIOUS SHAREHOLDERS

FAIR MARKET VALUE
“…the price at which the property will change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having a reasonable knowledge or relevant facts.”

SOLUTIONS AND SMILES

ACCOUNTING PROCESSES/PROCEDURES

Private
• Bound by GAAP

• Profit motivated
• Less restraints to maintain bottom line
• Decision

Going Public Through An Initial Public Offering (IPO)

Going Public Through an Initial Public Offering (IPO) If and when Riordan considers going public with an IPO, the company should first consider selecting and hiring an investment banker, “a person who brings together investors and firms”, even though an investment banker is usually not a banker but instead part of a brokerage firm. An IPO is a way for businesses to bring in new funds by selling securities on the open stock market to willing investors. Depending on the company’s history and stability…

Words 317 - Pages 2

What Companies Have Recently Filed Initial Public Offerings?

Recently Filed Initial Public Offerings? 1. Explain how you found the one or two companies that interested you. Step 1: I followed the link you provided. www.ipocentral.com Step 2: I browsed some of the subcategories that Hoovers’ IPO Central provided. [For Example: IPO Pipeline, IPO Filing, IPO Performance, IPO Scorecard, Biggest First Days, Winners and Losers.] Step 3: I then selected the IPO Calendar that listed all of the up and coming public offerings. Here I selected…

Words 1585 - Pages 7

Essay on Alibaba IPO

Name: Yizhou Fang A13070682 Subject: Markets 6010-003 September 19, 2014 was a memorable day in Chinese public corporation history. Alibaba Group became a public company on that day when its shares began trading on the New York Stock Exchange in the largest initial public offering in U.S. history. As we know, Alibaba is an Internet Commerce giant in China. In order to grow international businesses and consumers and to improve the company’s ecosystem, the Executive Chairman of the company…

Words 879 - Pages 4

Fin 501 Case Mod 1 Case 1 Essay

Running Head: Initial public offerings TUI University Module 1 CASE FIN501 - Strategic Corporate Finance Professor Dr. Glenn Tenney January 2013 Introduction - AVG'S IPO Initial public offering (IPO) is when a company who goes public and becomes available to stock investors to purchase rights to the the company. The company owner must decide what market they want their company to go public on i.e.; NYSE. Companies like AVG, a technology online company…

Words 955 - Pages 4

Ipo & the Sec Essay

process through which a privately held company issues stock to the public, known as an Initial Public Offering or IPO, transforms a business from a privately owned and operated entity to one that is owned by public stockholders. This will provide a business with access to the public capital market and increases their credibility and exposure. It does have a few drawbacks, such as loss of flexibility and control for management. Going public may be the only avenue for a business to raise funds to expand…

Words 1006 - Pages 5

Essay on Sample Questions Ch 15 Key

Questions Ch. 15 1- A corporation's first sale of equity made available to the public is called a(n): A) Share repurchase program. B) Shelf registration filing. C) Private placement. D) Seasoned equity offering (SEO). E) Initial public offering (IPO). 2- The contract provision whereby the underwriting syndicate may, at their option, purchase additional securities from the issuing corporation at the initial offering price is called (the) : A) Regulation A. B) Red herring provision. C) Green…

Words 1021 - Pages 5

Essay The Process of Ipo

the Initial Public Offering Process Katrina Ellis (kle3@cornel.edu) Roni Michaely (rm34@cornell.edu) and Maureen O’Hara (mo19@cornell.edu) January 1999 *All Authors are from Cornell University, Johnson Graduate School of Management, Cornell University Ithaca NY 14853. Michaely is also affiliated with Tel-Aviv University. A Guide to the Initial Public Offering Process A milestone for any company is the issuance of publicly traded stock. While the motivations for an initial public…

Words 3173 - Pages 13

Essay on assesment 2

general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately. More ambiguous terms for a privately held company are unquoted company and unlisted company Public company:- A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market. Although a small percentage of shares may be initially "floated" to the public. Public companies…

Words 431 - Pages 2

Summary The Venture Life Cycle Essay

trial Comments and initial reactions from friends and family member Form an initial test of whether the idea seems worth pursuing further Reaction and interest level of trusted business professionals provides additional feedback If early conversations evoke sufficient excitement, the entrepreneurs take the next step: producing a prototype, delivering a trial service, or implementing a trial process. b) Startup stage: Occurring when the venture is organized, developed, and an initial revenue model is…

Words 957 - Pages 4

Fin 370 - Virtual Organization Strategy Paper

She will compete in the industry by keeping her prices low and offering the product lines her customers’ requests. Kathy Kudler has done some catering and is considering expanding this division of the company. Kathy “is able to keep costs down and the profit margin is 25% better than product profit margin in the stores”…

Words 1599 - Pages 7