IntroductionRiordan Manufacturing is a global plastics injection molding company, employing 550 people with estimated annual earnings of $46 million. Dr. Riordan, a professor of chemistry, who had obtained several patents relative to processing polymers into high tensile strength plastic substrates, was also the founder of Riordan Manufacturing. Sensing the commercial applications for his patents, Dr. Riordan started Riordan Plastics, Inc. in 1991. Owned by Riordan Industries, which is a fortune 1000 company that has revenue of over $1 billion. They have three production plants; a plastic beverage container facility located in Albany, Georgia; a custom plastic parts division located in Pontiac, Michigan; and a plastic fan parts facility in Hangzhou, China. The San Jose, California is corporate headquarters and houses Riordan's research and development department. Some of the products Riordan specializes in are fans, plastic bottles, heart valves, medical stents and custom plastic parts.
Riordan Manufacturing's Current Assets are at $14,555,092 although the current liabilities stand at $6,974,094.
The Net profit after taxes stood at $2,038,547 and out of that the cash on hand is at 1,938,354. The company's focus in on Six Sigma, leading edge R&D and exceeding ISO 9000 standards defining the attitude and abilities of Riordan Manufacturing. Riordan is an industry leader in polymer materials and provides solutions to the customer's challenges. The R&D department can be the foremost in the industry.
IPO ApproachThe Riordan Manufacturing must consider installing an enterprise system that will improve the company financial accounting system. Selling of shares using the IPO and going public opens the company to increased observation. The Securities and Exchange Commission (SEC), state regulators, and the financial community, such as brokerage houses. The Riordan Manufacturing will need to make regular reports to the shareholders and to the security regulators. Presently, the financial reporting is performed inaccurately and...