FIN 501 Module 1 Case

FIN501 - Strategic Corporate Finance

An IPO for AVG?

Initial public offering (IPO) is defined as the first sale of stock by a company. Companies like AVG ) looking to further the growth often use an IPO as a way to generate the capital needed to expand. AVG is uniquely positioned to spearhead innovation in the industry thanks to its employing some of the worlds leading experts in software development, threat detection, threat prevention, and risk analysis. You can read more by accessing the following information source:

PR Newswire AVG Technology (2012). AVG technology announces filing for proposed initial public offering.

Please use the following steps to access the above article:

i) Type website:

ii) Click on Library Portal and then click on Proquest Central

iii) Type the title of research paper/article (e.g., AVG technology announces filing for proposed initial public offering) and then click on search

Given AVG'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 AVGs IPO.

Carter, A. (2005). Morningstar follows Google's lead.

Please use the following steps to access the above article:

i) Type website:

ii) Click on Library Portal and then click on EBSCO multi-search

iii) Type the title of research paper/article (e.g., Morningstar follows Google's lead) and then click on search

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

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

To answer the above question, please include responses to the following issues together with other issues that you think are important:

?The type of investors AVG is likely to attract

?The lessons learned from Google and Morningstar from their auction IPOs

?Advantages of each type of IPO

?Costs of each type of IPO (e.g., US Securities and Exchange Commission fees, stock brokers commission, other fees, etc., but how much? Please provide numbers and ratios in the paper.)

?Risks of each type of IPO

2) What do you perceive you have learnt in Module 1 Case Assignment? Which of the following learning objectives do you feel you have mastered?

?Describe the steps a firm must take in order to go public

?Identify success factors for a firm making the IPO decision

?Discuss and analyze the different types of IPOs

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. In addition, it is REQUIRED that you answer all the questions related to learning outcomes.

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

?Answer the Case Assignment questions clearly and provide necessary details. Also please review Tips for Good Writing [