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Ktm Case Report

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Introduction
The purpose of this report is to determine the optimal course of action for KTM in order to pay BC European Capital, and to position our company for future growth and profitability.

Background. In 2003, BC European Capital, a venture capitalist firm owning 49% of KTM, expressed its intention to exit its investment in KTM by September of 2006. KTM’s net profit nearly quadrupled in 2002. It appears this growth will continue in 2003, though likely at a much slower rate. KTM has a 13.0% share in the stagnant European off-road market, and an 8.5% market share in the burgeoning United States off-road market.

Scope. We have investigated several possible solutions for KTM: (1) an initial public stock offering; (2) a …show more content…

KTM should plan to spend the next year prepping for the IPO; ideally, the following two years will be spent ensuring BCE gets its money and growing our company. According to Kelly, Burke, and Markham (2011), “performing as a public company” means holding mock earnings calls, assessing the staff in the accounting and tax departments, and filing quarterly reports with the local government.

The team must also find an underwriter to sell the stocks to. This underwriter, often an investment bank, will then be in charge of determining if they will be able to sell our stock; they will also play a role in determining the price of the stock based on the demand. Jones and Swaleheen (2010) found that underwriter reputation was strongly correlated with the returns on an IPO. Consequently, the team should research and work with an underwriter that has a strong reputation for delivering value to the issuer.

In order to supplement the efforts of our underwriters, are organization must work towards improving our marketing plan and our communication. Customers should be made aware of our company’s direction; in particular, they should need to understand that our vision is to continue to provide them with the best motorcycles possible. Additionally, our

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