Situation Analysis and Problem Statement
Private companies are often touted as family type businesses where relationships are close and problems are handled internally without the brash glare of headlines. In some instances these companies strive on their privacy and their ability to make decisions without government oversight. Private companies are often reluctant to go public and will avoid doing so at all costs. However, there may come a time when there is not other choice.
This paper will look at one such company and review the issues that are incumbent in an IPO situation and discuss questions such as the following: How does going public affect the stakeholders? What is the best way to go public with the least amount of fallout? Is going public the right decision at the right time? How can the company executives make this work?
Situation Background (Step 1)
Gene One is a biotechnological company that has led the industry in groundbreaking technology. Their technological approach to abolishing disease in tomatoes and potatoes has eliminated the need for pesticides, thus paving the way for consumers to purchase these items without the worry of ingesting cancer causing chemicals. On target to become an industry leader, Gene One is positioned to go public and the leadership team has been tasked with developing a sound strategy to do so.
Gene One is the brainchild of CEO Don Ruiz and he along with four of his colleagues made the company a reality. Don is the creative force behind the company and has extensive technology and industry expertise. Michelle Houghton is the CFO and one of the founders of the company. She has never be ...