preview

Case Study Of Constantine's Grocery

Better Essays

University of the people
BUS 5111: Financial Management – Term 1, 2017-2018
Written Assignment 6
XXX XXX XXX Abstract
In this case, Constantine’s Grocery became a full service grocery store chain in the USA and required additional 135 million dollars to maintain current operations. This paper is intended to provide the narrative to discuss pros and cons of different ways such as issuing debts and stocks to raise capital. Later, I talked about initial public offering(IPO) process.

Background Information
Constantine’s Grocery, one of family businesses in the USA, has endured sixty years and became a full service grocery store chain. In order to maintain the current operations and support the growth in the future, an additional …show more content…

issuing stocks to the public. has some benefits. Firstly, it increases public profile, and provides reassurance to customers and suppliers (Advantages and disadvantages of stock market flotation, n.d.) Secondly, it creates a market valuation for the business since financial statements and annual report of the company are disclosed.
However, it has several downsides including increased disclosure, potential loss of control and potential restrictions on management action. The company is required to disclosure the information of the company such as salaries of the managers on a timely and regular basis to fulfil the requirements from stock exchanges, securities commissions and regulators and board of directors would limit managers' action and act in the shareholders’ best interests. (James, 2008) The competitors and investors may get more internal information of the company after disclosure.

Initial Public Offering(IPO)
IPO is a process of a private company becoming to a publicly-traded company with the first sale of the shares of the stock in the stock market. (Matt, 2015)

Initial Public Offerings process involving many different people, including investment bankers, attorneys, and accountants to make the process go smooth within 6 months. (Private-owned company IPOs: Is timing everything? | Deloitte US, …show more content…

(n.d.). Retrieved October 03, 2017, from https://moneyterms.co.uk/debt_covenants/
Suralta, J. (2016, April 12). Is Your Company Aiming for an Initial Public Offering? This Checklist Can Guide You. Retrieved October 03, 2017, from http://foundersguide.com/guide-to-ipo-process/

IPO Process - A Guide to Initial Public Offerings (IPOs). (n.d.). Retrieved October 03, 2017, from https://corporatefinanceinstitute.com/resources/knowledge/finance/ipo-process
Koba, M. (2013, December 27). Initial Public Offering: CNBC Explains. Retrieved October 03, 2017, from https://www.cnbc.com/id/47099278
Execute a debt offering. (n.d.). Retrieved October 15, 2017, from https://www.pwc.com/gx/en/services/audit-assurance/ipo-centre/execute-a-debt-offering.html
Advantages and disadvantages of stock market flotation. (n.d.). Retrieved October 15, 2017, from https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-stock-market-flotation
Marino, M. (2015, August 31). Stock Market Basics: What Is An IPO? Retrieved October 15, 2017, from http://www.nasdaq.com/article/stock-market-basics-what-is-an-ipo-cm514916
Brain, M. (n.d.). How NASDAQ IPOs Work. Retrieved October 15, 2017, from

Get Access