KUDLAR FOODS PRIVATE LIMITED Expansion strategies Following are the lead options operable for expansion under the given scenario. GOING everyday THROUGHT AN INTIAL PUBLIC OFFERING (IPO) Initial earthly concern offering (IPO) refers to the friendships commencement honor issue made available to the earthly concern to tolerate spick-and-span sources of funds to finance its next stage of growth. In separate words, it is the first time a company offers its shares to the public which was antecedently unlisted, at a particular price. After flourishing IPO, company becomes a public company and enjoys all the benefits and opportunities of public company. Opportunities /Benefits tramp and diversify equity base Enable cheaper glide slope to expectant Exposure and prestige trace and retain the scoop management and employees Facilitate acquisitions create multiple financing opportunities: equi ty, translatable debt, cheaper bank loans, etc. Merger Merger is a credit line term used to describe a tool put on by corporations for expansion purposes. Normally, a merger means the gang of two business firms that result into one bigger entity. Opportunities /Benefits By merging, the companies hope to benefit from the following: Staff reductions.
Economies of scale A bigger company placing the magnitudes can save more on costs. Mergers excessively translate into improved purchasing power to pander equipment or office supplies - when placing larger determines , companies have a greater ability to negoti! ate prices with their suppliers. Improved market reach and doing visibility Companies merge with companies to reach new markets and grow revenues and earnings. A merge may expand two companies marketing and distribution, unwarranted them new sales opportunities. A merger can similarly improve a companys standing in the investment fraternity: bigger firms often have an easier time raising corking than smaller ones. . ...If you want to get a full essay, order it on our website: OrderCustomPaper.com
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