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Unformatted text preview: historical share price performance provides a buying opportunity therefore allowing for more cash for the organization. When is a merger or an acquisition, instead of an IPO, more appropriate? If an organization has the right services and products to grow but does not have the capacity to attain the right level of output, an IPO would present the best way to grow because it will give them the capital they need to reach their potential. In contrast, if a company can scale its own products or services to meet demand but is held up by an inability to deliver a complementary or dependent product or service, a merger with or acquisition of an organization that delivers the product or service in question would be the most beneficial way to grow. The company would immediately attain the people, tools, and operational structures needed to supplement its own offerings, allowing it to flourish in the market without a long period of growing new capabilities in-house....
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- Spring '08