Describe the process (in detail) of how a public offering occurs.
A chronological account of how most public offerings would be an appropriate format, although not required.
Discuss the impact and implications of each alternative.
Explain how each alternative affects control over the company.
As a small family business, the internal affairs and finances of the company were well guarded from the public view by the family.
As a new IPO, how would the guarding of their finance change?
What are the financial reporting effects of this decision?
How will additional debt impact future earnings?
How will new stockholders change the management of the company?
Superior papers will explain the following elements:
Provide a narrative about the impact of issuing stock to the public. The narrative will include the topics of loss of control of the company and the requirements that future financial statements will be available to the public.
Provide a narrative about the impact of issuing debt to the public. The narrative will include the topics of a potential loss of the company if debt covenants are breached and the requirements that future financial statements will be available to the public.
Provide a narrative on the initial public offering (IPO) process using at least four research sources in addition to the textbook material. The narrative of the IPO process steps should include the:
role of an investment banker
deal negotiation
preparation and submission to the SEC of the registration statement
SEC approval
setting an issue date
setting an issue price
