McBride Financial
Services
Virtual Organization Strategy
University of Phoenix
Dana Campbell/Fin 370
Team A: Eric Johnson, Audra Purifoy,
Ron Sweet, and Alison Vesper
2/23/2009
Introduction...
• Strengths and weaknesses of available
options
• Opportunities and threats of each
approach
• Recommendation
Options for Growth
Strengths
•
•
•
Weaknesses
•
IPO = access to more
capital through sale of stock
Merger = fresh
perspectives, access to new
or better capabilities, and
access to existing assets
•
Acquisition = Same as with
a Merger
•
IPO = regulation by SEC,
demand for public
disclosure
Merger = incompatibility
issues, resistance to
changes, and reduction
of employees
Acquisition = same as
with a Merger
The goal is wealth...
Choose carefully/wisely because there are pros and cons for
each.
Opportunities and Threats
Opportunities
•
•
•
IPO = allows the company
to expand through new
assets
Merger = decreased
expenses for new assets,
blending what works best
from both companies,
cream of the crop
employees, systems, and
processes
Acquisition = Same as with
a Merger
•
•
•
Threats
IPO = loss of control,
exposure of company
activities and legal
proceedings
Merger = loss of valuable
employees, temporary
reduction in productivity
and revenue, lengthy
process
Acquisition = same as
with Merger, often
hostile causing more
disruption in acquired
company
Recommendation
It is the recommendation of this team that McBride
Financial Services would achieve more success
and growth by going public through IPO.
Conclusion...
• Strengths and weaknesses of available
options
• Opportunities and threats of each
approach
• Recommendation
References:
•
McBride Financial Services. Our Mission.
(2005). Retrieved from:
https://ecampus.phoenix.edu/secure/aapd/cist/
vop/Business/McBride/Internet/McBridePort.ht
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