Your online MBA degree coursework includes topics like strategic management, corporate valuation, financial restructuring and more. The business of the Initial Public Offering (IPO) is relevant to these and many other advanced business topics and can help you better understand the financial environment you will be entering upon graduation.
What is an IPO?
An IPO helps organizations raise money for operations by selling shares to members of the public. An IPO marks the company’s transition from private to public; once public, a company’s shares can be traded on the stock market.
Successful vs. Unsuccessful IPOs
Filing an IPO can be risky for businesses, especially in today’s tech-driven, ever-changing global environment. Recent successful IPO filings include Atlassian and GoDaddy, where unsuccessful examples include Etsy and King.
Some markers of success include:http://onlinemba.umd.edu/blog/the-most-important-issues-in-modern-international-business/
- The company handles financial and reporting requirements well
- Company leaders are efficient communicators
Some indicators of potential failure include:
- Initial shares are overpriced
- The company is small
To learn more about the IPO process and what factors can ensure success, view the infographic below: