Project #38261 - Finance

Initial public offerings

An IPO for AVG?

Initial public offering (IPO) is defined as the first sale of stock by a company. Companies looking to further growth, like AVG (http://www.avg.com/ca-en/homepage), often use an IPO to generate the capital needed to expand. AVG is uniquely positioned to spearhead innovation in the industry thanks to its employing some of the 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 from http://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.

Do some reading on the online IPO process used by Google and Morningstar using the CyberLibrary and Internet search engines. This is an 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 the background material to look for more information, and then write a 4- to 5-page report for the executives of AVG by answering the following questions.

    1. What type of IPO should AVG use—a traditional IPO or an online auction? Based on your analysis and findings, what would you recommend to the executives of AVG? Explain your reasoning in detail.

To answer the above question, include responses to the following issues together with other issues that you think are important:

    • The type 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.

Important Notes:

  1. This is an MBA course: Provide reasoning for your response.
  2. Your report/assignment will not be accepted without proper citations and references. You must use the sources from the background material together with the sources you find on your own. In addition, it is required that you answer all the questions related to learning outcomes.

Assignment Expectations

In the Module 1 Case 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 question 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 should include a direct answer to the assignment question, with the body of the paper focused on defending your answer.
  • Answer the Case Assignment questions clearly and provide necessary details.
  • Write 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.
  • Whenever appropriate, please use Excel to show supporting computations in an appendix, present financial information in tables, and use the data computed to answer follow-up questions. In finance, in addition to being able to write well, it’s important to present information in a professional manner and to analyze financial information. This is part of the assignment expectations and will be considered for grading purposes.

Subject Business
Due By (Pacific Time) 08/31/2014 12:00 am
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