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White Paper - Asparagus Co going public Asparagus Corporation, one of the world's premier hotel companies, operates hotels and resorts worldwide. It offers over
boat at the landing, and cried bitterly. The next morning she told us: `Last night I was sailing on the lake.' Let us hope that the duration of this dream-voyage
Submitted by shparaga on June 24, 2008
Category: Business
Words: 1386 | Pages: 6
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Asparagus Corporation, one of the world's premier hotel companies, operates hotels and resorts worldwide. It offers over 300 hotels and resorts.
Public ownership can provide significant benefits to the company and its shareholders, but it has many disadvantages, too.
Going public will provide both tangible and intangible benefits, including the following:
Increased capital
Access to capital will increase because publicly traded stock is more attractive due to liquidity. IPO will provide the company with additional funds to meet working capital needs, expand research and development efforts, invest in facilities and equipment.
Improved financial position
Asparagus Corp. will experience an immediate improvement in the balance sheet and debt-to-equity ratio.
Enhanced ability to raise equity
If our stock performs well in the stock market, additional stock might be sold on favorable terms, which can provide additional funding for the future growth.
Liquidity and valuation
Venture capital firms, require liquidity in a company. Venture capital firms generally organize funds with an expected life of less than ten years. At the end of that period, they need to liquidate the fund. By going public, we provide the venture capitalists with the ability to sell their holdings or to distribute publicly tradable stock to their fund participants.
Improved credibility with business partners
Going public will provide business partners such as suppliers, distributors, and customers with more information. Prospective suppliers and customers thus will feel more secure about entering into a relationship with the company.
Personal wealth
IPO will enhance company’s net worth. Gain by selling a portion of existing stock during the IPO won’t be realized immediate, but...
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