Situation Analysis and Problem Statement
Genetic engineering involves the insertion of a segment of DNA containing one or more genes from one organism into a chromosome of another organism. Gene technology is used to help elevate levels of important nutrients to make crops more nutritious as well as to improve biological protection of crops against insects, weeds, and fungi. Genetic engineering revolutionized natural selection as well as Wall Street expectations. Gene One, a private company established in 1996 entered the biotech industry with groundbreaking gene technology to eradicate disease in tomatoes and potatoes, is no different.
Situation Background
Gene One (GO), once a two million dollar start up company, has grown to a $400 million company after the introduction of gene technology that eradicated disease in tomatoes and potatoes. GO CEO Don Ruiz has noticed a sharply rising stock index on Wall Street indicating interest in biotechnology. The board members believe GO will have to go public within the next three years in order to keep pace with both demand and to realize annual growth targets of forty-percent. Certain members of the team feel timing are crucial for success due to recent scandals on the human genome sequencing as well as the stringent Sarbanes-Oxley Act (SOA) and its requirements.
Under the SOA, Gene One needs to have an IPO board to go from a privately held company public. First, GO lacks the infrastructure to support an IPO board. The IPO board gives GO an initial evaluation of its internal controls over financial reporting and identifies its' readiness in areas that may require improvement. Secondly, Gene One needs IPO capital for developing, marketing, ...