Financial Highlights
A.)Develop a brief 5-year strategic plan, the first year beginning at the end of year 4 of your company, and going for 5 years in the future. Financials should be yearly, covering the past 4 years and the future 5 years. Increased company growth should be supported by reasonable projections about new products, market penetration, competition threats, growing expenditures, etc.
Value your company at the end of year 4 and year 9based on the past performance and the newly projected 5-year plan. This is necessary to come up with an offering price for your IPO shares (or selling point for your shares). Additionally, please ensure that you are presenting the Y4 and Y9 snapshots of the income statement, balance sheet and statement of cash flows on two unique pages in your new Strategic Plan (similar to what you did for the Y2&3 Deliverable).
Remember that possible investors in the IPO (or major sale/merger/etc.) will have numerous questions, for example:
- Why has the company elected to go public (or to be purchased by another company, etc.)?
2. What will the company be doing with the money raised in the IPO (how does this sale position you and the buyer for long term success)?
3. What is the competitive landscape in the market for the business’s products or services? What is the company’s position in this landscape?
4. What are the company’s growth prospects?
5. What level of profitability does the company expect to achieve?
6. What is the management like? Do the people involved have previous experience running a publicly-traded company (a merger/acquisition/sale, etc)? Do they have a history of success in business ventures? Do they have sufficient business experience and qualifications to run the company? Does management itself own any shares in the business?
7. What is the business’s operating history, if any? (Investopedia.com)
ETC.
You must make sure that the report addresses these types of questions, if the IPO (sale or merger) is to be successful.
B.)Each group must make a major/tangible/documentable contribution to the group (the institutional group) for which you are on their board. The contribution must be communicated by institutional group. The board group must set up at least 1 meeting with the institutional group to brainstorm ideas to improve their medium-to-long-term prospects, strategies and decisions.
I will not be fielding complaints about groups being uncommunicative, uncollaborative, etc. Simply put: if the institutional group does not reflect the marked impact you made on their final deliverable, then the board group’s grade/performance will reflect just that… but if the contributions of the board group’s input, ideas and brainstorming is valuable and it’s captured in the institutional group’s report and presentation, this will greatly benefit the board group’s final deliverable performance and grade.
