This 4-page paper discusses differences between mergers, acquisitions and IPOs. Also provides a SWOT analysis for mergers. Bibliography lists 1 source.
Name of Research Paper File: AS43_MTmergbusi.rtf
Unformatted Sample Text from the Research Paper:
these days, the business world has become more complex; business valuations and bottom line functions seem to be taking over. And its these things that are driving activities such as
initial public offerings (IPOs) business mergers and business acquisitions. Sometimes when discussing such terms, we find they can all run together. In this
paper, well separate the three terms, business merger, IPO and business acquisition. Once we have the definitions in hand, we can then move on to build a SWOT analysis for
the business merger. What is the difference between an IPO and a business merger? There is plenty of difference, as these are two
different activities. They are the same in one respect, in that the companies involved need to perform due diligence on its worth and value, and then try to convince others
that the activity is viable. With the IPO, the entities that need convincing are the underwriters, SEC and initial investors. With the merger, it might be the SEC that needs
convincing (if there are anti-trust issues. But these are the only main comparisons that can be made between these two activities, because they are conducted for very different reasons.
The IPOs take place when a company wants to raise capital, period. To do this, the company needs to make a variety of applications
to a variety of entities (such as the afore-mentioned SEC and the stock exchange). Then, once the application has been approved, the company then conducts a "road show" among investors
to make the presentation and ascertain the likelihood of the stock doing well. Raising money through an IPO is time-consuming and costly and is not undertaken lightly.