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McBride Financial Services. Virtual Organization Strategy University of Phoenix Dana Campbell/Fin 370 Team A: Eric Johnson, Audra Purifoy, Ron Sweet, and Alison Vesper 2/23/2009. Introduction. Strengths and weaknesses of available options Opportunities and threats of each approach
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McBride Financial Services • Virtual Organization Strategy • University of Phoenix • Dana Campbell/Fin 370 • Team A: Eric Johnson, Audra Purifoy, • Ron Sweet, and Alison Vesper • 2/23/2009
Introduction... • Strengths and weaknesses of available options • Opportunities and threats of each approach • Recommendation
Options for Growth Strengths Weaknesses • IPO = regulation by SEC, demand for public disclosure • Merger = incompatibility issues, resistance to changes, and reduction of employees • Acquisition = same as with a Merger • IPO = access to more capital through sale of stock • Merger = fresh perspectives, access to new or better capabilities, and access to existing assets • Acquisition = Same as with a Merger The goal is wealth... Choose carefully/wisely because there are pros and cons for each.
Opportunities and Threats Opportunities Threats • IPO = loss of control, exposure of company activities and legal proceedings • Merger = loss of valuable employees, temporary reduction in productivity and revenue, lengthy process • Acquisition = same as with Merger, often hostile causing more disruption in acquired company • IPO = allows the company to expand through new assets • Merger = decreased expenses for new assets, blending what works best from both companies, cream of the crop employees, systems, and processes • Acquisition = Same as with a Merger
Recommendation It is the recommendation of this team that McBride Financial Services would achieve more success and growth by going public through IPO.
Conclusion... • Strengths and weaknesses of available options • Opportunities and threats of each approach • Recommendation
References: • McBride Financial Services. Our Mission. (2005). Retrieved from: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/McBride/Internet/McBridePort.htm