Question: Amina has a big decision to make. Should she: Continue on as she is running a sustainable business? Go for Malika's offer of investment and
Amina has a big decision to make. Should she:
Continue on as she is running a sustainable business?
Go for Malika's offer of investment and commit to taking her company public?
Sort Amina's list of IPO considerations into pros and cons.
Pros
Cons
Enormous opportunities to grow the business by raising a lot of money quickly
Amina has a big decision to make. Should she:
Continue on as she is running a sustainable business?
Go for Malika's offer of investment and commit to taking her company public?
Sort Amina's list of IPO considerations into pros and cons.
Pros
Enormous opportunities to grow the business by raising a lot of money quickly.
Less debt and more money for things like advertising, new products and benefits for staf.
Generates publicity and media coverage IPOs are big news!
Access to professional venture capital investors who have direct experience in Amina's sector.
More likely to attract talented staff and senior managers.
Once public, all company dedings and data are under scrutiny Board members and senior menagement are held to high standards and subject to financiel investigations in the form of audits
Because the IPO process is so intensive, the enercy needed for going publis can takeawsy fome arts elsewhere in the companyz leaning it open to competitors or mismanegement.
There might not be enough interest from imuestars to make it worthwhile.
They are expensivea big tesm of lamgers lovestinent Bankers and Accountants are nesded to nswigate the longwinded proaess for bboutayear
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