A Final Report of Superior Living Company Regarding on the Financial Pros and Cons for Superior Living Going Public

4522 WordsAug 9, 201219 Pages
Subject: A Final Report of Superior Living Company Regarding • The Financial Pros and Cons and final recommendations for Superior Going Public and the New Production Plant. • A Discussion Of What Huddle rates The Production Plant project will not Pass • Debt Versus No Debt Option (Associated Risk And Impact To Financial Statement) • Key Financial Metrics For The Superior management Team Which Include: o Payback Period o Net Present Value o Internal rate Of Return o Modified Internal rate Of Return The goal here is to base all recommendations on Sound Financial Principles, based on a detailed review of the company’s Balance Sheet and its Income Statement which were initially provided as part of this report. Going Public: Considering the advantages and disadvantages for Superior Living Company, Inc. going public, what recommendations should one make, especially as it relates to the new production plant? To tackle the relative pros and cons for going public via IPO (initial public offering), instead of debt financing through loans or other means that do compel the company to cede control to investors, I must state that going public involves selling shares the public for the first time, either at once or in installments to raise capital for growth and new plants. Therefore, whenever “…a company sells shares of stocks to the public for the first time”, it is involved in initial public offering process (IPO). Considering that the IPO stock price and success is direction function of the state of the stock market in general, investors’ willingness or readiness or level of comfort to accept and pay for new IPO, it becomes necessary to remain prudent and caution in deciding whether to issue an IPO or not. This prudence is imperative in light of the many pros and cons appurtenant to the issue of IPO’s, which deserves a closer examination by first defining the

More about A Final Report of Superior Living Company Regarding on the Financial Pros and Cons for Superior Living Going Public

Open Document