5 pages in length. The writer briefly discusses going public, horizontal merger and conglomerate merger, as well as provides a SWOT analysis for each one. Bibliography lists 4 sources.
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(negative) which can ultimately bring about significant financial support (positive) and requiring a board of directors that now make decisions that were heretofore made solely within the company (negative), yet
reaping tremendous financial benefits due directly to the doors that open because of the board (positive). STRENGTHS: Potential for raising a considerable amount of money for the company by
trading on the open market. WEAKNESSES: Public companies are synonymous with shareholders, boards of directors, rules, regulations and reports, all of which can place a stranglehold upon economic aspirations.
"From an investors standpoint, the most exciting thing about a public company is that the stock is traded in the open market, like any other commodity. If you
have the cash, you can invest. The CEO could hate your guts, but theres nothing he or she could do to stop you from buying stock" (Investopedia, 2008).
OPPORTUNITIES: Better rates for issued debt; create more stock if market warrants; stock as a bargaining tool makes mergers and acquisitions more simplified and advantageous; prestige of being on the
open market; and liquidity of stock equates to bringing new talent onboard with ownership programs (Investopedia, 2008). THREATS: Becoming vulnerable to public access. II. COMPANY ACQUISITION WITHIN SAME
INDUSTRY Choosing a horizontal merger to expand operations has both its positive and negative points, inasmuch as existing familiarity with product may present a particular advantage with regard to reduced
training and stable clientele, but it may also introduce various methods, policies and staffing decisions that work in opposition to Riordans long-time operation. STRENGTHS: Considerable potential for reduced competition.
WEAKNESSES: Forced compromise of Riordans high-quality internal operations so as to incorporate those of the merged company. OPPORTUNITIES: Immediately augment clientele by virtue of absorbing the other companys