Global Expansion

In: Business and Management

Submitted By alowndes
Words 376
Pages 2
Going public through an IPO
Riordan Manufacturing’s approach through initial public offering will improve finances quickly. An IPO will raise capital and reduce debt. Funds acquired from common stock will be used to improve the area of the organization that needs help. The organization will have greater access to capital markets and in turn the valuation will increase. Riordan Manufacturing currently does not have a consistent format to maintain corporate date files (University Of Phoenix, 2013). They should consider installing an enterprise system that will improve financial accounting. Selling shares publically puts the company at high observation with the securities exchange commission, and state regulations. The Riordan organization will also have to submit regular financial reports to its shareholders.
Acquiring another organization in the same industry
If Riordan Manufacturing were to acquire another organization in the same industry they could block competitors and have dominance over the market share. Acquisition can also bring in a positive cash flow, along with a new customer base. There greater weaknesses that pertain to Riordan Manufacturing when considering an acquisition. Management and labor unions could be at risk when merging two companies. There will be a vast change in personnel especially with middle to high management, where elimination is inevitable. Shareholders will also have a positive increase however this can create a view that renegotiating will not be necessary. Even in a worse case scenario for Riordan Manufacturing, the shareholders return will increase through bankruptcy liquidation.
Merging with another organization
Merging with another organization will put Riordan Manufacturing at a higher risk for the future of the company. Merging with a corporation can drastically change the daily work habits of the existing employees for…...

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