The IPO of XYZ Construction Inc. Essay

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

Clough, Richard H, Glenn A. Sears, S K. Sears, Robert O. Segner, and Jerald L. Rounds. Construction Contracting: A Practical Guide to Company Management. , 2015. Print.

Financing Issues that an Organization Faces When Going PublicAn Initial Public Offering (IPO), is extremely expensive for organizations. It is common for a small business to pay between $50,000 and $250,000 to organize and publicize an offering. According to

When communicating with our clients, Holder Construction Group will focus on key points that the clients should know about us. These key points have been mentioned and explored in the earlier part of the report, and they have been repeated several times.

* The market is extremely unpredictable and an unsuccessful IPO can result in a great loss of time as well as money for the company

1. Assume there are three separate real estate companies US Realty (which uses the cost model), UK Realty (which uses the revaluation model, and International Realty (which uses the fair value model). Assume that on December 31, 2003, each company pays £1,000 cash to obtain investment property comprising of land with negligible value and an office building worth £1,000.  The building has a 10 year useful life, has no residual value, and is expected to provide a constant stream of economic benefits over time.   What is the accounting entry for each company for the following four scenarios:

(1) According to the case, global IPO activity during the first quarter of 2012 fell to $14.3 billion, which was dramatically down from $46.6 billion during the first quarter of 2011. In addition, we can see in Exhibit 5 that IPO activity in US have dropped sharply since the second quarter of 2011. Number of deals dropped from 383 in the second quarter of 2011 to 157 in the first quarter of 2012.

Reynolds Metals is the majority owner of the ice scream company Eskimo Pie Corporation and has decided to sell this company. Nestle Foods provided the highest offer of $61 Million. Due to delays of the Nestlé's purchase, Reynolds Metals has take into consideration the IPO proposal of David Clark, president of Eskimo Pie Corporation, rather than selling the company to Nestle Foods (Case Study, 2001).

The government of china is very keen to encourage foreign investors, because foreign companies are regarded as relatively good corporate

Problem: Prada requires a significant amount of capital both to re-finance debt that is maturing in the next six to twelve months and to finance its intended growth into the Asian (especially Chinese) markets

As our point of view, though IPO will lead to short-term ups and downs of stock price, it will eventually reflect the real values of the company in the long run, consisting the stock price with its long-term performance.

The core organization structure for XYZ Construction Inc. will get to expand in preparation for IPO. In view of global expansion, every functional division within XYZ Construction Inc. will be required to have regional representatives for better efficiency, while maintain local ways of operations. All departmental executives will give its own instructions to ensure speed of delivery in meeting the required project timeline.

Cover Page 1.0 Executive Summary 1 Chart: Highlights 1 1.1 Objectives 1 1.2 Mission 2 2.0 Company Summary 2 2.1 Company Ownership 2 2.2 Start-up Summary 2 Chart: Start-up 2 Table: Start-up Funding 3 Table: Start-up 3 2.3 Company Locations and Facilities 4 3.0 Products 4 4.0 Market Analysis Summary 4 4.1 Market Segmentation 4 Table: Market Analysis 4 Chart: Market Analysis (Pie) 5 5.0 Strategy and Implementation Summary 5 5.1 Competitive Edge 5 5.2 Sales Strategy 6 5.2.1 Sales Forecast 6 Table: Sales Forecast 6 Chart: Sales Monthly 7 5.3 Marketing Strategy 7 6.0 Management Summary 7 6.1 Personnel Plan 7 Table: Personnel 8 7.0 Financial Plan 8 7.0

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

This is the twelfth H-share issue on the HKEX. Total 1,080 million “H” shares would be offered and the total market capitalization is HK$1,575 million.