An IPO is the first issue of stock a company makes, where the issuing firm sells pieces of itself to investors who are now partial owners (Taubman, 2001). The investors own a number of shares, which determines what percentage of ownership they hold. Owning a portion of the firm can be potentially lucrative for an investor if the firm increases in value. After the investors own the shares, which they acquired at a certain rate, they can sell them in the secondary market for a profit, as long as the firm’s value has indeed increased. At times, when a firm has excess net income, they will share those profits with the shareholders through dividends, paying a certain amount per share back to the …show more content…
Based on the strength of the organization, the resort could be a profitable company if they would merge with one of the surrounding hotels. Baderman is one of the strongest resorts in the area and has the beat amenities of the three hotels in the area. Baderman also has a strong financial strategy to strengthen the recreation center and the botanical garden to draw more revenue. If the organization considers merging with one of the surrounding hotels, they should consider addressing the issue of the same standards of Baderman Resort. The opportunities that tourists present will enhance the revenue of the company and allow Baderman to create a way to purchase an acquisition of another hotel. Baderman should be able to increase its ability to merge because of the strong ties the Baderman Family has with the Chamber of Commerce. Since it was founded in 1994, the company has increased in revenue and has increased their profits on a yearly basis. Merging with another hotel will only increase the profitability of the shareholders and allow more employees to be hired, thus bringing more tourists to the town and to the