Question
For the Scenario below, you are the CFO. How you gonna explain to your fellow C suite members and the board of directors the scenario
For the Scenario below, you are the CFO. How you gonna explain to your fellow C suite members and the board of directors the scenario below.
Scenario:
Boudin Wireline Services, Inc. in Estelle, Louisiana is contemplating an acquisition of Lagniappe Consulting, LLC, a complimentary company based in Lafayette, Louisiana. Boudin is an S Corporation and Lagniappe is a limited liability company. The venture capitalist believe the structure of both companies is not correct to do an initial public offering of $100 million. The venture capital firm has suggested a C corporation. The venture capitalist will be taking an equity kicker in the deal, three board seats, and have expressed their desire to maximize profits. The CFO meets with the other C suite members and the board of directors to explain what is happening.
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