Atlantic Electrical Contractors Questions 1. Evaluate the current market conditions and discuss some advantages and disadvantages of ABC going public. ls Toliver making the right decision? Why, why not? 2. Comment on the interrelationship of taking the firm public and its reputation, managerial depth and skill, and operating history. 3. Discuss the company's core business and its potential over the next 3-5 years. What factors will likely contribute most significantly to the company' success or failure? 4. Describe the industry in terms of size of firm, profitability and possible regional differences as success factors. 5. Does Toliver's desire to 'liquidate' at least a part of the company's value seem reasonable? Discuss in terms of his personal goals and the future of the company. 6. What is the role of the investment banker in this decision, and in general? 15 Toliver at a likely disadvantage because he is not a "finance type"? Please eXplain. 7". What is the likely initial public offering (1P0) price for the company's stock? As a source of additional information for Toliver, what is the price of the bonds mentioned in Exhibit 3? Please make sure Toliver understands the interrelationship among the bond's face value, coupon rate, current yield and price. (For the stock price calculation, assume relevant industry data will also apply to AEC.) Assume that the investor's required return on a stock of this type can be derived from the capital market date in Exhibit 3. 8. Does the company's management depth and structure seem adequate for going public? Please explain. 9. What additional data and information would be useful in this decision to go public? Name some likely sources for such information. Please be specific, and explain your