The CFO of Work Brain Company has to communicate his assessment of the company’s financial position to the executive board. The company was founded in 1999 and has grown. The company is considering raising more money and assessing the alternatives available to finance an investment amount. The CFO has to present if the company is ready for an IPO at the stock exchange. If the company opts for this option, it needs to consider which stock exchange would be the best for this situation. Other financing alternatives available to the company are the current finance venture agreement. The board also needs to assess if it requires money or not. The words of the memorandum that the CFO needs to present will have a large impact on the organization.
1. Discuss whether Workbrain should prepare for an IPO.
2. Determine if now is the right time for an IPO.
3. Determine which exchange would serve the company better (TSX or NASDAQ) and why.
4. Determine if the shareholders would be better off if the company pursued potential acquirers rather than an IPO.
5. Discuss what other financing alternatives are available.
6. Discuss if the company even needs to raise money.