This Case is about FINANCIAL MANAGEMENT
PUBLICATION DATE: June 15, 2012 PRODUCT #: IIR076-PDF-ENGTo Sink or Swim When Floating Stock Case Solution
While it is clear why some firms, like Facebook, might choose to go public at this phase of their advancement, the IPO process itself is expensive and time consuming, and will transform a company beyond recognition. Facebook’s lackluster introduction, in May 2012, has just strengthened longstanding worries that IPOs are mainly used to enrich a select few within the investment banking community alongside their most prized customers, frequently at the expense of the very businesses the banks are being paid to take public. By doing thus this informative article discusses the motivations behind IPOs they work in practice, what firms can expect to gain from going public, and, just as significantly, the dangers they may face. In addition, it analyzes the present state of play in the IPO markets, in addition to the likelihood of some other dot-com bubble.