problem 1) Initial public offering (IPO) is defined as first sale of stock by a company. Companies looking to further growth, like AVG (http://www.avg.com/ca-en/homepage), often use the IPO to generate capital needed to expand. AVG is uniquely positioned to spearhead innovation in an industry thanks to its employing some of world’s leading experts in software development, threat detection, threat prevention, and risk analysis. Read more by accessing the following information source:
PR Newswire AVG Technology (2012). AVG technology announces filing for proposed initial public offering. Retrieved May 2012 fromhttp://www.avg.com/ca-en/press-releases-news.ndi-3521; http://www.avg.com/ca-en/homepage
Given AVG's global online audience and untraditional business model, it is not clear which method would be best for the company when it decides to go public.
Accomplish some reading on online IPO process used by Google and Morningstar using the CyberLibrary and Internet search engines. This is the untraditional approach to the IPO and may or may not be the best approach for AVG’s IPO.
Carter, A. (2005). Morningstar follows Google's lead.
Read the information in background material to look for more information, and then prepare a 4- to 5-page report for the executives of AVG by answering the following problems.
1) What kind of IPO must AVG use—a traditional IPO or an online auction? Based on your analysis and findings, what would you recommend to the executives of AVG? Describe your reasoning in detail.
To answer the above problem, include responses to the following issues together with other issues that you think are important:
• The kind of investors AVG is likely to attract.
• The lessons learned from Google and Morningstar from their auction IPOs.
• Advantages of each type of IPO.
• Costs of each type of IPO (e.g., U.S. Securities and Exchange Commission fees, stockbrokers’ commission, other fees, etc., and how much.
Please provide numbers and ratios in the paper).
• Risks of each type of IPO.
2) What do you perceive you have learned in the Assignment? Which of the following learning outcomes do you feel you have mastered?
• describe the steps a firm must take in order to go public.
• Identify success factors for a firm making the IPO decision.
• describe and analyze the various types of IPOs.
Provide a short evaluation of the Assignment.
Important Notes:
i) Provide reasoning for your response.
Case Assignment Expectations
In the Assignment, you are expected to:
• describe the purpose of the paper and provide a conclusion. An introduction and a conclusion are important because many busy individuals in the business environment may only read the first and the last paragraph. If those paragraphs are not interesting, they never read the body of the paper.
• Answer the Case Assignment problem clearly and provide necessary details; there is no need for lengthy background information; focus on what type of IPO should be used and why you feel this way. The first paragraph must include a direct answer to the assignment problem, with the body of the paper focused on defending your answer. See the “Tips for Good Writing” below.
• prepare clearly and correctly—that is, no poor sentence structure, no spelling and grammar mistakes, and no run-on sentences.
• Provide citations to support your argument and place references on a separate page. (All the sources that you listed in the references section must be cited in the paper.) Use APA format to provide citations and references [http://owl.english.purdue.edu/owl/resource/560/01/].
• Type and double-space the paper