Different types of threats for each different approach much each are carefully considered to ensure that the right approach is chose. There are benefits and risks for each approach. The threats must be read and understood appropriately. The first approach would be about Patton Fuller Community College going through with an IPO. An IPO is also known as an Initial Public Offering. The IPO is the first stock sale is a public offering that sales shares of stocks from a company to people within the “general” public. Some of the threats that Patton Community Hospital could go through if the IPO is pronounced publically would be that the people who make large investments for important things like retirement, they are putting their retirement at risk because the market can be very good to people at times, but it is not a sure thing. “”This is the most negative piece of legislation I’ve ever seen,” frets William Elmore of Foundation Capital.” It will dampen capital formation. Anyone standing to create wealth by building a growth company would face putting personal assets at risk.” There will be fewer future IPOs if some founders choose not to go public as a result of lingering concern” (Mamis, Robert A. (1997). Going public puts a lot of people in a position to create an opinion immediately and this might be a bad thing because business could slow.
Some of the threats that could take place if another organization from the same industry is acquired the company that is being acquired (if it is the buying company) will end up in quite a bit of debt because it will end up costing more in the long run. “Because a public company’s stock is relatively liquid, it can be used as the currency to acquire other businesses and fuel further growth. Many owners of successful private enterprises are happy to sell their businesses in exchange for the marketable securities of a growth company” (QWOTER.CO. (2013). The threat that opposes here would be that even through with this approach there is a good chance of the business being larger and better, but this would mean that there is also the risk that the company is making the wrong move, and this could fail just as easy as it could succeed. This means that a threat would be that the business could go downhill. For example, if the other business acquired has a bad person working for them or a bad rep, this will now include all companies involved.
Patten Community Hospital also faces threats of merging with another company’s. Some of these threats would include debt, legal issues or standards, and mutual understanding and respect for all company’s involved. Merging a company can be very costly. This could mean putting the Company who is buying into some serious debt. This would not be good for either one of the merging parties. It would be smart to weigh every decision very carefully when choosing to merge companies because you want to make sure that everything legal is discussed and agreed upon to ensure that there are no misunderstandings. Also any business’s that are considering merging should meet and get to know the other business owner well before making the final decisions because there are so many different types of business, different types of strategies, different types of techniques, and different types of ideas and styles. Business owners that merger businesses may be very settled on the way that he or she runs their business. Therefore this may cause conflict. Businesses can be very successful from merging their businesses together if a good team strategy and no conflict.
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