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Going public through an IPO represents a strong growth opportunity for Kudler. The infusion of capital that an IPO would bring would allow the company to fulfill one or more of its key opportunities. These would include geographic expansion, expanding product line, expanding catering and bringing in outside management. In fact, the new shareholders would almost certainly demand that outside management be brought in to help. Going public could help improve the visibility of the company's brand name. It could also provide the opportunity to attract better managerial talent because the firm could offer equity-based compensation. Kathy Kudler could use the opportunity to move towards retirement as well.
Acquiring another company is the same industry would allow Kudler to expand geographically. They may also acquire new competencies that the other firm has. In addition, the acquired company might have a strong brand that can be leveraged. Lastly, expanding in this manner may help Kudler to achieve greater economies of scale. This could help them address one of the biggest competitive threats they face -- the emergence of a competing gourmet store that can undercut their prices. In addition, an acquisition would provide Kudler Fine Foods with access to different markets -- they could utilize different formats suited for different areas. For example, acquiring smaller stores could give them the means to make a market like Del Mar succeed, which is not possible given Kudler's current format.
Merging with another organization brings many of the same benefits as an acquisition would. However, a merger might bring Kathy Kudler the opportunity to phase out of the industry and towards her retirement or other opportunities. Moreover, a merger opportunity would be with a larger company than an acquisition, so the advantages such as economies of scale would be greater compared with making an acquisition.
To begin with, publicly owned entities according to Brigham and Ehrhardt (2010) are required to submit to SEC their annual as well as quarterly reports. As the authors' note, these reports could end up becoming a costly burden. You should therefore take into consideration reporting costs before taking Cleveland Cavaliers public. Yet another factor you should consider is the IPO cost. In the opinion of Weaver and Weston (2007),
IPO Facebook's IPO Facebook, the world's leading social networking site, has recently filed to raise capital by launching an initial public offering (IPO). During this process the company will sell equity shares in the form of stocks to interested investors. There has been much hype about Facebook's IPO and it has been a long awaited event. Facebook has had an interesting history and the company's CEO has publicly stated his intentions
Firms, even in the same industry, can only be evaluated on the basis of their ratios when their business characteristics are relatively similar. This includes products, markets, responses to economic stimulus, cost of capital and a variety of other attributes. The further Citrus Glow is from its competitors on any key measure the less useful Dan's method becomes. Furthermore, Dan's assumptions regarding the firm's growth prospects are arbitrary, rather
Many companies go public so that they can expand and so that they can offer employees additional benefits. In addition Shepherd, et al. 2001 asserts that An initial public offering appears to offer the entrepreneurial company a number of benefits, including legitimacy with stakeholders, access to debt capital (Sutton & Benedetto, 1988), and a mechanism by which entrepreneurs can reacquire control from investors (Black & Gilson, 1998). For investors,
IPO Leno's quote about creating an artificial shortage of fish draws in some lessons about the business world to the old adage. The original adage is the first part of the quote about "Give a man a fish, he'll eat for a day; teach a man to fish and he'll eat for a lifetime." This quote is talking about dependency, where the proverbial man is hungry. If you give him a
They include the Investment Corporation, company employees, and institutional investors. Apart from a handful of firms, the articles provide inadequate or incomplete information in their prospectuses. I can acquire essential data for purposes of my estimation in my research. The magnitude of under-pricing is estimated at different levels in the secondary markets. For all the articles, the degree of under-pricing appears to be high than the degree of average pricing