Huffman Trucking was established in 1936 and developed its crinkle byout the eastern United States. They have recently expressed a desire to scatter the business and they are reviewing several options. This case will provide a arise analysis on trio expansion strategies including the release of initial overt offerings, the encyclopaedism of another firm, and a merger with another firm. Each wile will offer favors and disadvantages, by contrasting the strengths, weaknesses, opportunities, and threats of each of the tierce strategies, this paper will highlight why Huffman Trucking should result away to merge with another firm in come in to expand its business. Initial Public offering (initial offering)An initial national offering occurs when a family releases stock to the public for the first epoch in the special market. Those shares are then made getable for trade in the secondary markets. Several advantages and disadvantages exist when a corporation releases an initial offering (Keown, Martin, Petty, & Scott, 2005, p. 11). Huffman Trucking is privately held company till now. The SWOT analysis of going away public through IPO is as follows:StrengthsThe offering of stocks to the public raises new capital for the company. The new capital butt joint be used to robe in the business for future growth and the owners of the firm can easily switch their shares to cash.
Owner diversification is also considered an advantage of going public through IPO (Venture associates, 2009, p. 1). WeaknessesOne of the major weaknesses of going public is exhalation of the personal benef its for the owners of the firm. The initial ! cost of IPO is high and is ongoing. For well-nigh 15% to 25% of capital raise through IPO is spent on expenses related to the public offerings (Keown, Martin, Petty, & Scott, 2005, p. 413). subsequently the firm has gone public, the firm is indispensable to report sporadically to... If you want to get a adequate essay, order it on our website: OrderCustomPaper.com
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