Huffman Trucking Company Case Study
The Huffman Trucking Company was founded in 1936 with only one tractor-trailer. The Company grew because of World War II; it boosted the need for carrier services between factories in the Midwest to ports on the East Coast. In 1945, the business had grown in size to 16 tractors and 36 trailers. They still have a business with the U.S. Government today. Huffman Tucking Company has been acknowledged as the first major freight carrier to subcontract 100% of its information systems support. The business has continued to grow from internal sales and the purchase of five Eastern regional carriers. We will discuss how going public through an IPO, acquiring another organization in the same industry, and merging with another organization. We will discuss the strengths, weaknesses, opportunities, and threats of each approach.
If Huffman Trucking Company were to go public through an Initial Public Offering (IPO) the advantages would be beneficial for the company whereas it would allow the company to raise money by selling stock to the public. Going public through IPO would also allow the stock from the company to be traded on the open market like other commodities. IPO is a quick way to raise a lot of cash for your company as well as …show more content…
The integration of the two organizations can be challenging as well as costly. Decisions must be made on who will manage the organization, employee rationalization, vendor rationalization, facilities, and so on. Similar to an acquisition the combined financials of the new organizations must be secure enough to ensure payment of current obligations. Projected cost savings may not be realized thereby impacting the financials of the organization. An intangible threat to completing a merger is the melding of two corporate cultures who may have had very different ways of conducting business even though they were in the same
If Huffman Trucking Company were to go public through an Initial Public Offering (IPO) the advantages would be beneficial for the company whereas it would allow the company to raise money by selling stock to the public. Going public through IPO would also allow the stock from the company to be traded on the open market like other commodities. IPO is a quick way to raise a lot of cash for your company as well as …show more content…
The integration of the two organizations can be challenging as well as costly. Decisions must be made on who will manage the organization, employee rationalization, vendor rationalization, facilities, and so on. Similar to an acquisition the combined financials of the new organizations must be secure enough to ensure payment of current obligations. Projected cost savings may not be realized thereby impacting the financials of the organization. An intangible threat to completing a merger is the melding of two corporate cultures who may have had very different ways of conducting business even though they were in the same