Assignment 4 Term Paper Example | Topics and Well Written Essays - 750 words

Assignment 4 - Term Paper ExampleHowever, employees in the private smart set have limited options with regards to vesting their options especially time they are still employed there. Within the private enterprise there is really no agency of knowing the fair market value for ones stock options. Going ordinary offers a better market for employees to exercise their stock options. Therefore, from the employee perspective, Delteks reason for going state-supported was merited. 2-What advantages did Deltek find in going public formerly it became a public company? What disadvantages did it face? In going public, Delteks experienced two major benefits increase in brand equity that came with all the attention it real as a public image and extra cash from the sale of stock which have it the resources to introduce important acquisitions. However, from the case, it seems that the company experience greater disadvantages than advantages on becoming a public company. The biggest disadvanta ge was the obsession with the stock price. Everything in the company now revolved around the stock price and this focus shifted the companys attention away from the more important long-term goals (Johnston 4). This was especially dangerous given that it forthwith has an effect on the companys ability to survive in future. ... Why did those companies go public? Who gained? The three major differences between Deltek and former(a) dot-com companies that rushed to go public were that (1) it had a champion investor who was the founder (2) the founder was not eager to sell his stake and (3) Deltek was already a profitable company. The other dot-com companies went public largely for three reasons. Firstly it was to raise money to fund growth irrespective of whether they were currently profitable or not. Secondly, these companies went public to gain the visibility or prestige offered by be a publicly traded stock. Thirdly, these dot-coms went public in order to cash in on the inflated prices that others were impulsive to pay for tech start-ups at the time. The people who gained from the dot-com initial offerings were mostly the venture capital investors, the founders and employees who had stock options in spite of appearance those tech start-ups. These individuals cashed in on the high IPO prices whereas the parvenu investors were left to face the dot-com bubble burst a few years later. For Deltek, both the founder and employees who had stock options gained from the initial IPO prices, however their work-life balance was adversely affected by the demand placed on them by their new public status. 4-Why did Deltek decide to leave the public arena and become a closely held corporation once again? Do you think its management made the right decision? Deltek decided to leave the public arena for three main reasons (1) to focus on its long-term goals (2) to avoid being second-guessed by the fits and starts of a volatile stock market and (3) to regain the work-life ba lance that was taken away by going public. Delteks management made the right decision with regards to