Virtual Organization Paper

Taylor Ambulance Company is a privately held organization that provides medical emergency care for those who are in need of quick medical assistance. Taylor Ambulance Company is working toward expansion of going public through an IPO, acquiring another organization in the same industry, and merging with another organization. Comparing and contrasting the company’s strengths, weakness, opportunities, and threats for each approach will help Taylor Ambulance Company move toward reaching their goal in expansion.

Going public through an IPO

An initial s public offering (IPO) is an option for Taylor Ambulance Company. There are advantages and disadvantages to utilizing an IPO to expand on an existing organization. The most distinct advantage would be the financial benefits for Taylor Ambulance Company by generating capital (Balasubramaniam, 2014). This organization can use these financial benefits for funding capital expenses, paying off existing debt, as well as research and development (Balasubramaniam, 2014). In additional to generating capital, publicity would also be increased for Taylor Ambulance Company by showcasing their products and services to a specific customer base. Increased market shares are another great advantage to utilizing IPO’s. Many individuals who provide assistance to companies in their beginning stages are often able to cash in with the use of an IPO.

There are always disadvantages to take into consideration when attempting to expand an organization. In regard to IPO’s, financial reporting regulations could cause difficulties for new public companies as public companies are regulated by the Securities Exchange Act of 1934. Not only is it difficult for new public companies to meet the rules and regulations, but it can be quite costly as well causing an issue for smaller companies.

IPO’s also provide opportunities to public companies such as the transfer of ownership. However, threats are also something that needs to be...