Jet Blue Ipo Valuation Essay example

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IPO Valuation FIN-605 Md. Miran Hossain College of Business Colorado State University 10 September, 2012 1. What are the advantages and disadvantages of going public? Discuss the IPO process. The Advantages of Going Public  Financial Benefit The financial benefit in the form of raising capital is the most distinct advantage of going public. Capital can be used to fund research and development, fund capital expenditure or even used to pay off existing debt. Moreover, once the company is public, it has access to a new and liquid source of capital for any future needs it may have.  Increased Public Awareness As IPOs often generate publicity by making a company’s products known to a new group of potential customers, it created …show more content…

Investors can even attempt to unseat the management team by approving a different Board of Directors if they feel that growth rates are below their expectations. IPO Process Once the decision to go public is made the IPO process starts in full force. Typically the process from start to finish normally lasts about 3 months. A brief process of implementing an IPO has been described below:  Select an Investment Bank/ Underwriter The very first step in the IPO process is to select an investment bank/ underwriter. Throughout the process, the underwriter is responsible for making the issuance a success. Public offerings can be managed by one underwriter or by multiple managers. The lead manager is responsible for assembling the group of underwriters.  Holding the all-hands meeting An all-hands meeting should be attended by all members of the registration team company management, independent auditors, accounting advisors, underwriters, the company’s attorneys, and the underwriters’ attorneys. The purpose of this initial organizational meeting is to discuss the nature of the offering and the appropriate SEC registration form, coordinate responsibilities for sections of the

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