Dottie's Grocery Pros And Cons

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Week 6 written assignment AY2023- T5 – BUS 5111 The University of the People BUS 5111-Financial Management Instructor: Dinesh Tandon Date: 26th July 2023 Introduction As the nature of business growth, a private company needs solutions or methods to expand its business or deal with the company's debt by issuing debt or issuing stock to the public. Both support the company in raising capital, but each has different pros and cons. Looking carefully at these features is crucial for the company before making a final decision. Dottie’s Grocery’s situation and the possible solutions for this small family business. Dottie’s Grocery is a company with 45 years of history supplying fruit and vegetables through its store chain. As the nature of growth, the company needs more capital to maintain its current business operations and allow possible growth in the future. Since neither of the seven shareholders can cover this issue, they have to look for alternative solutions. The first is to issue debt to the public or corporate bonds, and the other is to issue stock to the public. I will discuss further each alternative's features, advantages, and disadvantages. The process of how a public offering occurs. …show more content…

The first is to hire an underwriter to consult the company about the process and requirements to meet the SEC requirements to file the registration statement, then get approval from them. Then you must make marketing materials and IPO documentation to attract potential investors via IPO roadshows. Finally, you must set the issue date and price (Elliott, 2023). The underwriter involves in each step of the way. This is such an essential role for a company to go IPO, so selecting the right person in charge is crucial for the

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