You work for a medium sized privately held electronics firm which is considering transitioning to a publically held organization. Your boss found out that you were taking business courses at your University and has asked you to prepare a presentation for upper level management to explain the process by which a privately held company would transition to publicly held company. He has asked you to describe the general accounting processes involved in establishing an initial public offering (IPO), including but not limited to accounting for all assets, liabilities and equities of the firm. Prepare a 15-20 slide professional MS PowerPoint presentation which covers the following:
- Identify and explain the top five reasons private companies go public.
- Explain information the firm is required to provide to the investor with complete transparency.
- Compare and contrast the differences in accounting processes and procedures that medium sized companies such as yours go through when going public.
- Discuss any concerns you believe the company should guard against while transitioning from privately held to publicly held (shareholder apprehension, fair market value, etc.) and provide solutions to each concern.