Strength Serina VanCuren FIN/370 November 5, 2012 Jessica Tiedeberg Strength The advantages of going public by dint of an IPO are; it will result in an gain in capital for the company. This will also place hear on the companys stock, and the consumers or insiders will be able to sell their stock or use it as collateral for larger loans and other financing postulate (Lewis & group A unit; Kappes, 2012) . Normally with an IPO a companys debt-to-equity dimension will improve after the first oblation t the public. When acquiring another(prenominal) organization within the like manufacture potentiometer have its stimulate strengths. One of the main(prenominal) strengths this basis have is to turn outdo your competition. This good deal ordinate you a ramification up when you and your competition are on the same rapscallion and are in agreement to what needs to be through with(p) to make a better profit. If a company buys out another company to make t heir own they can accession profit and its stock excerpts. When acquiring another business within the same industry, loans and other financial option become easier to pursue. When companies conflate they allow the companies to acquiring new enthronisation with the surplus capital available. Perhaps, the organization may invest in larger investment to yield more profit (Williams, 2008).
non only can this help new investments but this can also desegregate you and your competition or make it so that you have little competition out there so that you have a larger profit increase when you melt with other compan ies (Strategic-Acquistions.com, NA). Refe! rences Lewis & vitamin A; Kappes. (2012). The Advantages and Disadvantages of going Public. Retrieved from http://www.lewis-kappes.com/CM/FSDP/PracticeCenter/Securities/Securities--Business-Focus.asp?focus= base&id=3 Strategic-Acquistions.com. (NA). Grow through Acquisition. Retrieved from http://www.strategic-acquisitions.com/assay.html Williams, P. (2008, November 15). The Advantages and Disadvantages of Mergers. Retrieved from...If you want to put down a full essay, order it on our website: OrderCustomPaper.com
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