Fred’s Miracle Cough syrup has some work to do before making a
public offering. When registering, they will need to describe the
purpose of the capital raised (Kubasek, et. al., 2009). a With big box
chains demands nationwide, Fred and Sally will need to present a
game plan to meets legal requirements, cover production needs, and
instill confidence in future investors. a When registering, they will also
need to address the company’s history, operations, and management
as well as a providing a certified financial statement (Kubasek, et. al.,
2009). a They have made a wise decision to hire an accountant and will
need to ensure he is able to make accurate corrections to the
formerly “cooked books” to provide accurate financials. Jane’s
cooperation in disclosing the specifics of her inaccuracies could help
here. Additional verification/audit from an outside accounting source
could also reduce any speculation.
They will also need to address the registration requirement to
disclose pending legal actions (Kubasek, et. al., 2009). Luck would
have it that some of their past challenges have escaped the public eye
or the paper trail of the court system, however these things tend to
surface. Given the history and pending legal matter, a public relations
person could assist in presenting a positive face to some challenges. a
For example, the company has already shown gender diversity in its
hiring practices, however they could make anti-discriminatory
training mandatory and show support for a non-profit with this focus.
a Management is also under review. For Fred’s Miracle Cough
Syrup, this element looks less at the past and more toward the future.
They could consider growing their management team by hiring
someone who is experienced in leading a company with nationwide
operations as well as a Human Resources Manager. Staffing person(s)
to combat the expected growth and taking a pro-active approach to
minimizing concerns like discriminatory hiring could help with the
initial offering as well as future business needs. The right type of
management hire could also assist with developing and presenting
the details of their business model and planned use of their capital
proceeds needed in the IPO process (Kubasek, et. al., 2009).
The initial offering (and the business analysis it entails) is only the
beginning of going public. With laws requiring certain disclosure and
record keeping, they will need to prepare to be in the public eye going
forward. One more consideration would be disclosing executive
compensation to employees. Going public makes this information
publicly available to employees anyhow, so it could be better for
them to hear it from within the company first, perhaps along with
some sort of good news about profit sharing or bonus incentives. a It’s
like I tell my son when I get a call from his school, it’s always better for
you if I hear it from you first.
Kubasek, N. et.al., (2020). Dynamic Business Law, Fifth Edition. New
York, NY: McGraw-Hill Education
