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Beyond new-found riches, the
initial public offering (IPO) greatly affects the company and
its stakeholders. It is but one of various potential 'exit strategies'
that a startup may pursue, but the most commonly heralded by media.
We look at BioTransplant decision process to 'go-IPO'.
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Relevant
Texbook Chapters
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Discussion
Questions
- What is an 'IPO'? How does it differ from other ways of
funding a company?
- What are the key events prerequisite to an IPO?
- Why is the process for selling shares to the public so
heavily regulated?
- How does an IPO impact the founders? The management? The
private investors?
- What are the pros and cons to an IPO? What are BioTransplant's
alternatives?
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Main
Case Study: BioTransplant - Initial Public Offering
Examines the decision to go public. BioTransplant is an early
stage biotechnology company that must decide how to finance
its research and development. The pros and cons of public
offerings are analyzed versus alternative financing sources
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Heidi
Roizen: The advantages of profit
Profit is nature's way of showing you value. With bootstrapping,
you are not beholden to anyone. VC (venture capital) funding
is important too, but at the appropriate time. |
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