A business is just an idea that has been actualized by people who had the idea and to mind to see the idea succeed. There are famous entrepreneurs in the world today with great businesses that are being transacted across the world. There’s no limitation to being an entrepreneur, for instance, Michael Ferro regardless of his tender age, he became the great entrepreneur by starting businesses even before he completed his studies. As an entrepreneur, there are a lot of things you have to put in mind when you’re controlling a business.
Most business deals are done to raise funds for the company, and it can be done by both small and big organizations. An example of the business transactions that different companies conduct is the initial public offering, or IPO.Initial public offering is a business transaction can be conducted by large privately owned companies if they seek to start trading publicly and also for small businesses who are seeking to expand their capital. When you want to of IPO, and you need the help of underwriting firm, will assist you in determining the type of securities to issue, the time to bring the stock to the market and also the best price to issue the stock at. The initial public offering is the risky venture to enter in because it is hard to predict the changes in the market as you can’t predict the price of the security.
The other important business deals you have to know about is the alliances and joint ventures. A joint venture transaction can be explained as a situation where to big companies share the same skills, technology manufacturing to name but a few hands coming up together to form a new company whether to big companies become the parent to the new business.In such a joint venture, the parents companies stand to benefit when the other company makes profit while the smaller company have access to the skills, assets, knowledge and any other need from the two companies. Alliances business deals that are termed as legal agreement where to companies share their trademarks, technology and other similar aspects about them but doesn’t resource to a formation of a new company.
The other examples of business transactions are the mergers and acquisitions. In mergers, two companies come together to combine the assets and skills to create one company. Acquisition business deals can be defined elsewhere large companies buy a smaller company that is struggling financially hence becoming the parent company. For example, Michael Ferro Tronc is an example of a company that was formed by managers.