A growing corporation must take a look at itself to determine where it is going. The board of directors is charged with a very serious task requiring a great deal of insight into the benefits and challenges that will be faced by the corporation. At this time, Farm to Table is a closely held corporation. I will provide you with the legal information that will allow you to make an informed decision that is best for achieving your goals. You are posed with various options regarding the future of Farm to Table: moving towards an initial public offering, merger & accusation, or remaining a closely held corporation. Within each of these options we must look at corporate identity, governance, and concerns with the financials of the corporation.
Initial Public Offering
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You must have something to trade . . . Stock. Stock is a form of a security which is an investment that one makes where the investor is completely dependent on the efforts of another person. There are many benefits to going forward with an IPO. Transitioning from a closely held corporation to a publicly traded corporation can allow the early investors to capitalize financially on their investment. An IPO may also inject much needed capital into the corporation. CB at 800. The sale of securities is regulated by the Securities Exchange Commission (SEC). The SEC created specific laws with the 1933 Act in order to protect investors from fraud, while the 1934 Act provided a private cause of action. CB at 729. For a corporation to sell its stock shares publicly, it must be registered or have an exemption from registration. In registering, the corporation must file a statement providing corporate details concerning its financials and much more information that potential investors would want to know.. CB at
These three companies have all but either acquired or eliminated their smaller competitors. The giants compete for the leading fast food chain’s contracts, in turn only benefitting the restaurants and increasing their profits (Schlosser 116). The potato industry has become an, “oligopsony- a market in which a small number of buyers exerts power over a large number of sellers,” (Schlosser 117). The potato farmers of Idaho face as Schlosser recounts, “pressure to either get bigger- or get out if the business,” (Schlosser 117). “Over the past twenty-five years, Idaho has lost about half of its potato farmers.
In order to right the ship that is America’s food industry, we need to recognize the monopolies in the U.S food industry. These massive food conglomerates must be broken up in order to create competition in the market. This will allow the completion to dictate the market. More companies means more competition, and when companies compete, the consumer wins.
In 1919, farmers from thirty states, including Missouri, saw a need. They gathered in Chicago and formed the American Farm Bureau Federation. In 1919, they had one goal, they wanted to speak for themselves with the help of their own national organization. Since 1919, Farm Bureau has operated by a philosophy that states: “analyze the problem of farmers and develop a plan of action for these problems” (Missouri). In the past 94 years, the A...
In 1996, Jim Wagner was hired as chief financial officer and was able to successfully achieve steady profitability for the company. One year later, in 1997, in an attempt to source its strategic investments, Natureview organized an equity infusion from a venture capital firm; however, the venture capital now needs to cash out of its investment in Natureview and management will therefore need to find another investor or position itself for acquisition. In order to attain the maximum potential valuation, the company must make strategic marketing choices in an attempt to increase revenues to $20 million before the end of year 2001. And to meet this lofty goal, Natureview can potentially enter a new market and transition from the natural food channel into the supermarket channel, a move that would signify a dramatic departure from the company’s present cha...
Harvard Business School case 274-116. Cooper Industries, Inc. Retrieved on August 31, 2008, from University of Phoenix, Resource, FIN/545 web site: https://mycampus.phoenix.edu/secure/resource/resource
Following closely to the standards of the Public Company Accounting Oversight Board of the United States, the validity of Tyson’s financial statements and form 10-K has been confirmed through the close examination of an external auditor, PricewaterhouseCoopers (PWC).i The auditor’s report that is included in the annual report lends credibility to Tyson Foods Inc. by confirming that their reports give useful (relevant and reliable) information for investors and any other shareholders or stakeholders to the company. Furthermore, PWC scrutinized the internal control over financial reporting to ensure that no weaknesses were present and that an efficient system of control was in place for reporting ...
The purpose of this report is to analyze Target Corporation’s financial statements, determine the future growth potential of the company, and make a recommendation for or against the acquisition of the company.
How would you feel being raised for slaughter? Not being able to move because of a large crowd in such a confined space? How would you feel being encircled by disease, illness and constant abuse? To animals, this is known as a factory farm.
Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
IPOs are created by underwriters. The first step in creating the IPO is to hire an investment bank and negotiate a contract. The contract will state the type of securities (either stocks or bonds), the amount of capital to be raised, and the details of the actual underwriting agreement. The company and the investment bank determine the structure of the contract. There are two different types of structured agreements. The first type of structured agreement is the firm commitment agreement, in which the underwriter guarantees that a certain amount of capital will be raised. This is done through buying the entire offer and reselling it to the public. The second type of structured agreement is the best effort agreement, in which the underwriter will sell the securities for the company but does not guarantee how much capital will be raised. To protect themselves with IPOs, an investment bank will often form a syndicate of underwriters. When a syndicate is formed, a lead underwriter will be in charge of the syndicate, while the others will each sell a portion of the securities issued. Once a contract agreement is reached, the investment bank files a registration statement with the Securities and Exchange Commission (SEC) (IPO, 2005).
Kraft Food Group has some areas in which it can grow. The company needs to fix its debt-to-assets and debt-to-equity ratios. The profit margin has been sporadic for the last five years. This is not a good trend for the company. This industry has some very external factors that can devastate the profit margin such as drought and other Asian market trends that can hurt the bottom line for this industry and company. Weather cannot be controlled. This company has a lot of different products which can be good by not putting all of your eggs in one basket approach. This can also lead the company to be stretched and pulled into many directions. The food industry can be a very up and down market because of external forces. Kraft Food Group has some problems with putting chemicals in some of their products that are now prohibited by the government. Kraft Food Group has food scientists, engineers and chemists to combat these chemicals and to develop new products and provide consistent quality of products so they can grow through sales and profits. Kraft Food Group has a high standard of quality and respect from its customers. Kraft Food Group could lose financially by food contamination. This company will continue to grow in the future if they continue to make improvements, make investments, and produce quality
This is a publicly traded company in the US that has been ding quite well in the recent years. The company’s 10k filing for the year 2014. From this statement, the risks facing the company will be identified classified and suggestions made on how best to mitigate them in the subsequent areas. There are various areas that the risks can arise based on the company’s 10k filling (Mertz, 1999).
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
Sitting in the back seat between two towering piles of clothes and snacks we drive up the abandoned streets of Adell. I see vast open fields of corn and dense wooded forest filled with life, along with the occasional, towering grain house. We pull into a dry, dusty, driveway of rock and thriving, overgrown weeds. We come up to an aged log cabin with a massive crab apple tree with its sharp thorns like claws. The ancient weeping willow provides, with is huge sagging arms, shade from the intense rays of the sun. Near the back of the house there is a rotten, wobbly dock slowly rotting in the dark blue, cool water. Near that we store our old rusted canoes, to which the desperate frogs hop for shelter. When I venture out to the water I feel the thick gooey mud squish through my toes and the fish mindlessly try to escape but instead swim into my legs. On the lively river banks I see great blue herring and there attempt to catch a fish for their dinner. They gracefully fly with their beautiful wings arching in the sun to silvery points.
Food incorporation sets new protocols that require the farmers to keep purchasing more on dept. As a result of loans and only $18,000 annually (Kenner) they are stuck in a hole that they can’t get out of. I find many things disturbing