McBride Financial Services

Virtual Organization StrategyUniversity 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

• 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.

• 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

Strengths

Weaknesses

Opportunities and 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

• 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

Opportunities

Threats

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.htm