As the CEO, it is your responsibility to decide if your company should stay private or become a public company. Certain companies delay going public because of the uncertainty of economic and market situations. It is important to carefully consider the implications of both options. Prepare arguments supporting and opposing going public. Before giving your answer, familiarize yourself with the guidelines and regulations pertaining to going public by visiting Small Business and the SEC at http://www.sec.gov/info/smalls/casabas.html.
Click here to research the SOX law on the Internet. Your 4-5 page paper should address the following aims:
- Provide three advantages of a medium-sized private company going public and explain the rationale behind each advantage.
- Show that these same objectives can be achieved if the company remains privately held, presenting evidence to support your argument.
- Explain how companies can raise funds through stocks or bonds when deciding to go public.
Suggest four (4) leading financial ratios that will be evaluated and how each will impact the company’s decision to obtain expansion funds. Determine whether the results of the ratios would alter the decision to go public. Additionally, by researching the results of SOX compliance surveys, assess the financial impact that SOX might have on your company if it decides to go public. Considering the impact of SOX compliance, take a position as to whether your company can overcome the challenges posed by SOX compliance if the decision is to go public.
Our research suggests supporting your decision by examining the potential benefits and drawbacks that SOX may bring to your company. It is important to provide specific examples. Additionally, as the CEO, it is crucial to make a recommendation on whether going public or staying private aligns better with the company’s expansion goals.
