Question

In: Finance

Gentry Inc. is a mid-sized tech firm (200 employees and $300 million in revenue) and has...

Gentry Inc. is a mid-sized tech firm (200 employees and $300 million in revenue) and has been privately held since the firm’s inception ten years ago. The organization’s board of directors is keen on expanding the operations globally to take advantage of a growing market. Based on reports from the research and development team, the organization can increase its profitability metrics by 15 to 25% if it expands the operations to China, Japan, and Germany. Becoming a multinational organization will not be easy. To finance this expansion, the board of directors has decided to take the organization public and issue some bonds to raise an additional $50 million. The research team has already determined that the organization meets the financial requirements outlined by the Securities Exchange Commission. The goal is to maximize the Initial Public Offering (IPO), and the leadership must efficiently manage the capital, measure the risk of the investments, and ensure the financial metrics are robust relative to similarly sized organizations.

You are acting as an outside consultant to Gentry Inc. and have been hired to help the company with the IPO on the primary market so that it can expand internationally. Be sure to review the Course Project Introduction before you start this project.

Create an outline with all of the items that need to be addressed for you to complete the client engagement. The final page of your outline should be an APA References page.

Include your initial plans for:

growth strategies

capital structure

risk identification, which is all covered in subsequent weeks of the projects

Use a numerical outline with subcategories to complete this assignment. See example below:

Expanding XYZ Inc

History

Background

Locations

Customers

Growth Strategies

Etc.

Solutions

Expert Solution

As per given case I am an outside consultant to Gentry Inc. and have been hired to help the company with the IPO on the primary market. With this case It is very clear that they want to go in global market which can help them to increse profit for 15-25 %. So I need to preset this case to Secruity exchange Board to get approval to raise funds from Public.

History:

Gentry Inc. is a mid-sized tech firm (200 employees and $300 million in revenue) and has been privately held since the firm’s inception ten years ago. Company is doing faerly good and generating healthy profit since 10 years of establishment.

Background:

Gentry Inc. is a IT company running successfully since 10 years and very successful among mid size IT firms.

In an age of digital disruption, technology companies face increasing pressure to improve time to market and ensure their offerings are best in class.

“Buy, build, partner” models and M&A strategies can help companies gain a competitive edge in growth areas like cloud, cognitive computing, and data analytics. Company is looking for expansion in global market and work on R&D.

Location: Apart from their existing location company is also looking for expand their operation to China, Japan and Germany. These location can help them to get customer base as well.

Customer : Upcoming era is also belongs to technology expansion very company are focusing on Cloud computing, artificial intelligence etc. In such scenarion when company is looking to go global market can help them to grow rapidly and also can get ggod customer base. Company is already having good customer base which is helping us to make annual revenue of $300 million.

Growth Strategy :

As I have mentioned before company is looking for $ 50 million to increase the range to global market. Company is planning to spend money on expansion at the same time R&D, artificial intelligence, cloud computing . It meas a future of IT industry which can help them to get new set of customer and consistency for longer period.


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