FIN501 - Strategic Corporate Finance Module 1 - Case - 9990

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An IPO for Avaya?

 

 

 

Initial public offering (IPO) is defined as the first sale of stock by a company. Companies like Avaya (http://www.avaya.com/usa/) looking to further the growth often use an IPO as a way to generate the capital needed to expand. Avaya is a global leader in business communications systems. The company provides unified communications, contact centers, data solutions and related services directly and through its channel partners to leading businesses and organizations around the world. Currently, Avaya is planning for IPO. You can read more by accessing the following information source:

 

 

 

Klassen, M. (2011). Report: Avaya planning to go public. Retrieved August, 2011, from http://www.thetelecomblog.com/2011/06/08/report-avaya-planning-to-go-public/ 

 


Given Avaya's global online audience and untraditional business model, it is not clear which method would be best for them when they decide to go public.

 

 

 

Do some reading up on the online IPO process used by Google and Morningstar using the CyberLibrary and internet search engines. This is an untraditional approach to the IPO, but may or may not be the best approach for Avaya’s IPO.

 

 

 

Carter, A. (2005, January 10, 2005). Morningstar Follows Google's Lead. Retrieved August, 2011, from http://www.businessweek.com/bwdaily/dnflash/jan2005/nf20050110_8372_db035.htm

 

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Also please read the information in the background material, look for more information, and then write a 4 to 5 pages report for the executives of Avaya corporation by answering the following questions.

 

 

 

What type of IPO should Avaya use - a traditional IPO or an online auction? Based on your analysis and findings, what would you recommend to the executives of Avaya corporation? Please explain your reasoning in detail.

 

 

 

Some issues to consider in answering the above question include:

 

 

 

i) The type of investors Avaya is likely to attract

 

ii) The lessons learned from Google and Morningstar from their auction IPOs

 

iii) Advantages of each type of IPO

 

iv) Costs and risks of each type of IPO

 

 

 

What do you perceive you have learnt in Module 1 Case Assignment? Please provide your evaluation of the Module 1 Case Assignment in brief.

 

 

 

Important Notes:

 

 

 

i) Please note that this is an MBA course so you must show and demonstrate your ability to provide reasoning for your response.

 

 

 

ii) Also please note that your report/assignment will not be accepted without proper citations and references. You must use the sources from the background material together with the sources you find your own.   

 

 

 

Case Assignment Expectations:

 

 

 

In Module 1 Case Assignment, you are expected to:

 

 

 

?Describe the purpose of the paper and conclusion. An introduction and conclusion are important because many busy individuals in the business environment may only read the first and the last paragraph. If those paragraphs are not interesting, they never read the body of the paper.

 

 

 

?Answer the case assignment question clearly and provide necessary details; that is, no need for lengthy background information, focus on what type of IPO should be used and why you feel this way. Your very first paragraph should include a direct answer to the assignment question, with the body of your paper focused on defending your answer.  See the attached Tips for Good Writing for more detail on these expectations.

 

 

 

?Provide a quality argument; that is, no poor sentence structure, no spelling and grammar mistakes or run-on sentences.

 

 

 

?Provide citations to support your argument and references on a separate page (All the sources that you listed in the references section must be cited in the paper). Please use APA format to provide citations and references [http://owl.english.purdue.edu/owl/resource/560/01/].  

 

 

 

?Type and double space the paper.

 

 

 

? The following criteria will also be used to assess your paper:

 

 

 

>Precision: Does the paper address the question(s) or task(s)?

 

 

 

>Breadth: Is the full breadth of the subject, i.e., all the keys to the assignment, addressed?

 

 

 

>Depth: Does the paper/report address all elements of the topic in sufficient depth? Does it include and apply the background readings and other background resources? Are they included as references?

 

 

 

>Critical thinking: Are the concepts of this module applied accurately, logically, and relevantly?

 

 

 

>Organization: Is the paper organized in a coherent and systematic manner? Are headings included in all papers greater than 2 pages?

 

 

 

>Clarity: Is the writing clear and the concepts articulated properly? Are paraphrasing and synthesis of concepts the primary means of response to the questions, or are thoughts conveyed through excessive use of quotations?

 

 

 

 

 

Solution Description

 

An IPO for Avaya?

 

 

 

Initial public offering (IPO) is defined as the first sale of stock by a company. Companies like Avaya (http://www.avaya.com/usa/) looking to further the growth often use an IPO as a way to generate the capital needed to expand. Avaya is a global leader in business communications systems. The company provides unified communications, contact centers, data solutions and related services directly and through its channel partners to leading businesses and organizations around the world. Currently, Avaya is planning for IPO. You can read more by accessing the following information source:

 

 

 

Klassen, M. (2011). Report: Avaya planning to go public. Retrieved August, 2011, from http://www.thetelecomblog.com/2011/06/08/report-avaya-planning-to-go-public/ 

 


Given Avaya's global online audience and untraditional business model, it is not clear which method would be best for them when they decide to go public.

 

 

 

Do some reading up on the online IPO process used by Google and Morningstar using the CyberLibrary and internet search engines. This is an untraditional approach to the IPO, but may or may not be the best approach for Avaya’s IPO.

 

 

 

Carter, A. (2005, January 10, 2005). Morningstar Follows Google's Lead. Retrieved August, 2011, from

Module 1 case.docx
Module 1 case.d...