The Avoidance of growing pains: Success factors for a healthy organizational development of young SME's going public.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Background and Problem Statement
• State of Research
• Aims and Objectives
• Scope of research and limitations
• Literature Review
• The Concept of Growth
• Introduction
• Organizational growth
• Organizational Life Cycle
• Healthy growth vs. unhealthy growth
• The Concept of the "New Institutional Economics"
• Introduction
• New Institutional Economics
• Property-Rights
• Principal Agent Theory
• The Concept of Value-orientation
• Introduction
• Value-based management
• Financial value-drivers
• Operational value-drivers

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This master thesis aims to identify success factors that contribute to a healthy organizational development of young SMEs going public, focusing on mitigating the potential "growing pains" associated with this transition. The study investigates how SMEs can effectively leverage an initial public offering (IPO) to achieve growth while avoiding the pitfalls of a poorly managed expansion. Key themes addressed in this study include: * **Organizational Growth and Development**: Examining the stages of SME growth and identifying the challenges and opportunities associated with transitioning to a publicly held company. * **Value-based Management**: Assessing the importance of value orientation in the context of an IPO, focusing on both financial and operational value drivers. * **New Institutional Economics**: Applying insights from the New Institutional Economics to understand the role of property rights and agency theory in the context of SME going public. * **Management Quality and Success Factors**: Identifying key factors that contribute to a successful IPO and help mitigate "growing pains" including a robust management system and a clear strategy for growth. * **Empirical Analysis of IPOs**: Utilizing data from recent IPOs to assess the practical application of the identified success factors and their impact on post-IPO performance.

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction establishes the background and problem statement concerning the challenges faced by SMEs during the transition to a publicly held company. The state of research provides an overview of existing literature on the subject. The literature review delves into key theoretical concepts relevant to the study. This includes the concept of growth, focusing on organizational growth, the organizational life cycle, and the distinction between healthy and unhealthy growth. It also explores the New Institutional Economics, emphasizing the role of property rights and the principal-agent theory. Finally, the chapter examines the concept of value orientation in the context of value-based management, outlining both financial and operational value drivers.

Schlüsselwörter (Keywords)

This study focuses on the organizational development of young SMEs going public, analyzing the success factors for avoiding "growing pains" associated with an initial public offering (IPO). Key terms include: organizational growth, value-based management, New Institutional Economics, financial value drivers, operational value drivers, management quality, post-IPO performance, and success factors for IPOs.

Frequently Asked Questions

What are "growing pains" in the context of young SMEs?

Growing pains refer to the organizational and management challenges that arise when a small or medium-sized enterprise expands rapidly, especially after going public.

Why is management quality crucial for a successful IPO?

The study concludes that most problems after an IPO arise from poor management quality rather than just asymmetric information flow between the company and investors.

What are the generic requirements for a publicly held company?

Key requirements include robust financial controlling, a clear strategy, high transparency, and a solid internal organizational structure.

How does Value-based Management help in avoiding growth pains?

It focuses on financial and operational value-drivers that ensure growth leads to value creation rather than value destruction.

What is the "Organizational Life Cycle" concept?

It is a theoretical framework that describes the different stages of a company's development, helping to identify typical challenges at each stage of growth.

What role does the "New Institutional Economics" play in this research?

Concepts like Property-Rights and Principal-Agent Theory are used to explain the relationship between company management and new shareholders after an IPO.