Running head: MAXWELL-JOHNSON FUNERAL HOMES CORPORATION

Maxwell-Johnson Funeral Homes Corporation

Jamal Hamade
MGT/205
December 8, 2010
April Miller, Instructor

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Maxwell-Johnson Funeral Homes Corporation

An Initial Public Offering will generate the company a great deal of cash. Money can be
used to consolidate the business debt versus paying on numerous accounts. The previous owner
has used the business credit for personal use; which maybe for a car, thrift credit, credit card
purchases, etc The new owner assumes all business debt; however, the new owner is not
personally liable for the debt because of the corporation veil, but is responsible as an executive
of the company to pay the debt back. For the business to succeed the debt must be consolidated
into one, with the business bank rating at a high level because of the funds generated from the
IPO the business is able to succeed for a large request for a lump of cash to consolidate its debt.
Morgan Stanley will be the corporations underwriter for the business to go public. In the
Articles of Incorporation, three million shares be contracted with the state of Michigan and the
current and sole shareholder will hold one million shares. This will leave two million shares in
the companys treasury on hold. After completion of paperwork and granting permission from
the federal government, the company will offer half a million shares to the public. At this point,
there will not be just one shareholder/owner but multiple owners, up to five hundred thousand
and one. Shareholders can buy shares through any broker or through any brokerage account i.e.
eTrade, Ameritrade, Fidelity, and more. In a self-service brokerage account, it is similar to a
checking account with low interest on uninvested cash, somewhere close to a half percent. The
shareholders can assume as natural people, Limited Liability Companies, other Corporations
(public and non-public), and government entities the shareholders maybe domestic and/or
international entities.

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In consolidating the business debt, the company will receive a check worth the total value
of the debt, which is six million dollars. Which will be deposited in the company checking
account and immediately pay all of the business debt. Shortly after the companys debt is clear of
negative information, the financial institutions will report of this to Dun and Bradstreet, a
business credit-reporting bureau like Transunion for consumers; this in return will increase the
business credit score. Eighty points is a sufficient score in the business world to qualify for low
interest business credit. To ensure that the company will receive money to consolidate its debt
the bank will know the intended use of the funds even though, now, the company has negative
information on the business credit report.
To raise six million dollars from the IPO each share will value at twelve dollars each.
Twelve time five hundred thousand totals six million. The six million dollars will sit in a Money
Market account for a short term until other imperative issues be resolved. The intention is to put
some of the six million dollars in business CDs and offshore account however, resources are
limit and dedicated to other current issues that needs to be solved. The Money Market account
will be provided by Capital One at 1.04%. If the six million remain untouched, over five grand
each month will grow in the account. However, this cannot be done; the company must use these
funds on a regular basis. Since this is a Money Market account only six withdrawals is allowed
per month. This requires the company to obtain credit for day-to-day use, wages, business
growth, and other business accounts. American Express, Discover, Chase, Bank of America, and
Capital One offer great credit cards with awesome incentivizes to make it a pleasure to run a
business. The Discover card offer free checks without a cash withdrawal interest rate. The
Discover card can cover all the business debt that requires a check for payment. Essentially the

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cash flows from the business Money Market account to Discover. Discover will cover other
credit card payments with its check writing ability.
Noted on Dun and Bradstreet website that there is a new owner and the top-level
management has changed. This is because the previous owner charged these cards in the first
place. Some financial institutions do not want to do business with an entity because of internal
history even if the credit scores go up. Information about critical top-level management change
on the companys credit report may give the ease to banks about lending again to the company.
Along with the debt consolidated and six million liquid.
The company will use external resources to conduct some of its business work, such as
accounting, marketing, and landscaping. In accounting, all four quartile statements will be
audited by an outside source. This will give creditors the confidence money management will be
conducted to its highest standards. In addition, financial statements are accurate without bias
information, the external auditor will give objectionable financial statements to Dunn and
Bradstreet, and D&B will post it on the companys credit report. Marketing ideas and research
will also be contracted by an outside firm to promote the business and to restructure the business
image to the public. The exterior beautification of the buildings is the responsibility for an
outside business to ensure spectators, customers, and visitors of the company are of high quality.
The service list will be simplified and easy to understand. With the sadness and worry of
our potential customers, they do not want the hassle to burying their loved one. The company
will learn from cell phone service providers dissatisfied customers with the outrageous bills.
Even though the two businesses are in different business category, one thing does remain and it is

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that customer service remains an important goal. Horrible service list goes parallel with lack of
customer service.
The service offered will only relate to the business category. Maxwell-Johnson Funeral
Homes Corporation will not service the consumer market in other industries to confuse the
public of its business offerings. One price to one service, without the word neither but included
nor the asterisk symbol hidden. Fair prices is a priority in this Detroits financial crisis, a fair
price for the common customer can agree with however; at the same time, a price that will bring
profit to the organization. Profit after direct cost to service in addition, to indirect cost. Meaning,
bills, and employee wages must be satisfied. The remaining cash will be set aside for future use.
Again, an easy to read service list and not to deviate from the business service category,
when serving consumers; to avoid confusing the public. The company will offer a full range of
service for the dead and condolences for the dead loved ones. Embalming service is to preserve
the corpse to allow time for the family and friends to view the body. The funeral home may not
manufacture the clothing however, clothing for the dead will be contracted via a distributor with
a brochure to present to families at the meeting when discussing funeral arrangements. The
customer will be able read through the brochure at their leisure along with ample time to make a
decision for clothing. The price disclosed for the clothing is the price paid without any add-ons.
Dressing the dead is free and profit is made from the clothing by the contract with the distributer.
From the funeral home to the cemetery, the customer can choose the company to offer the
limousine parade for a nominal fee. The company will have a share profit contract with a local
cemetery. In the event the dead family does not know where to bury the body, the company will
only suggest and not impede any further recommendation. The family is sad, Maxwell-Johnson

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Funeral Homes Corporation knows of the emotional state, and employees will cater to their
sadness. Again, the contracted cemetery will only be for recommendation purposes and only
when the customer agrees with then the company is when revenue is generated. The funeral
home company will offer wake service for close family members to view the body in privacy.
Maxwell-Johnson Funeral Homes Corporation credit score goes up when the previous
debt goes into a paid in full status. Prior to the acquisition of the company its Dun and Bradstreet
business Credit Score Percentile is at a zero because of confirmed high risk. When common
shares are offered to, the public potential shareholders know of the business current state of
delinquent debt. In addition, the potential shareholders know of the use of their invested cash.
Their cash will be used to leverage more credit in return to eliminate the corporations
derogatory debt. The debt consolidation will improve the Financial Stress Score on the
companys Dun and Bradstreet business credit report. With the increased overall business, credit
score on Dun and Bradstreet also, with Experians Business Credit Advantage the funeral home
company can utilize its buying power to leverage trade accounts for productive business
activities. Activities such as training employees, with trained employees the company can
maximize its cash because employees are compensated fairly along with the knowledge in job
duties, which in return will not give the employees a reason to consider employment elsewhere.
With a low to non-turnover rate, cash to train employees can be set in a retained earnings account
because there will not be dividends issued to shareholders until the companys financial crisis
become resolved.
The company will initiate an auction to sell off its assets. Four major assets will be sold
to the highest bidder, which is one building and three limousines. Reducing the company to three

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real estate properties and nine limousines as liabilities. The auction will take place after the IPO
and the debt consolidation. Money earned from the auction will be used for business
productivity. Productivity, such as paying on the consolidated debt payments and the current/new
bills that must be paid within a short time period.
The three remaining properties will undergo maintenance for a livelier appeal. Exterior
maintenance will replace windows to keep heat inside the building in cold seasons and to ensure
a cool atmosphere indoors at summertime. This spending will be cost effective overtime with
lower gas bills and lower electric cost. When spectators, customers, and visitors witness the
business outdoor atmosphere they must be impressed for the impact of the companys success,
this is why the building frames must be replace if there are any evidence from observation of
heavy damage and if not the frames will have a fresh coat of paint. When people drive by they
should say to themselves, what a nice looking building moreover Detroit is a ruined city. Since
Detroit has a high crime rate and just about, everything is, getting broken into the doors will be
replaced with steel entry doors, this will help to minimize burglary, and it would not hurt the
buildings exterior beautification.
From the outside to the inside, the buildings will undergo cost effective maintenance.
However, for the inside the focus is on the responsibility of the employees. Of course, employees
must keep a professional attitude with well manners and have respect for all things, organic and
non-organic, that dwell on Maxwell-Johnson Funeral Homes Corporations property. Employees
must keep the business tidy, simply put everything must be organized and clutter be kept at a
minimum. In some analogies a clutter environment creates clutter thinking and in return clutter
thinking overlays to mistakes that should merely been avoided by some basic tasks. These tasks

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can be put in order of effectiveness, when things are stored proper labeling should be assigned to
the object, paperwork should be organized by certain criteria of importance, and employee area
of responsibility should be free of unneeded objects; objects that does not bring productivity and
ingenuity to the company. Trash located anywhere on the companys property should be handled
in an appropriate manner. Laziness will not be tolerated. Employees are responsible to pick the
trash up from outside litter and along the inside garbage. Employees must take the initiative to
recognize the trash and to dispose of it without the excuse that someone else will do it. Where
there is carpet, there should be a vacuum along with it to keep the carpet free from dust, odors,
and debris. Vacuuming the carpet will give the carpet longevity in its lifecycle. Floors should
also be mopped to keep a clean work environment.
In the event the funds become tight, avoid at all times, employees will be laid off.
However, all reasons will be taken into account, alternatives to cut budget elsewhere will take
priority before an employee will lose their job. This will be the last resort measure because
employees are humans and humans are the most important anything in this world. The negative
effect on their personal life is our responsibility because businesses are an important entity that
controls this world. Lay off employee in the same society of the business indirectly have a
negative impact on the business value. A city with low to no income households is a bad image
for the business and a bad area for the business to operate. One person is important and the more
the heavier the outcome becomes. Just as if one person reduces the crime they offer to society
then the society will be a better place to live by the value of that one person, nevertheless a value
that is more than zero.

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To bring profit to the company some businesses offerings needs to change and/or be
reduced. Overall, all prices will be cut, at the same time at a value that does bring profit to the
company. A profit after all cost, a profit that the money value of the business grows, and a profit
that the business can use to repay all debt. Customers that meet the standards for credit will be
offered credit. Money from credit will not come from a bank but be placed into the pocket of the
business accounts receivable. Therefore, the business does not make any money at the time credit
is offered, money comes in when customers pay on their balance. When a customer defaults on
their balance for any reason, their debt will be sold to any buyer who wish to take on this
account. There is a company in Warren, Michigan that buys debt from companies when the
borrower defaults called Asset Acceptance. This company will be the idea organization to go to,
to sell debt. When the funeral home is used to provide clothing for the dead, wake service,
mourning help, limousine parade, and burial there will be an all in one savings because the
customer elects the funeral home to do everything for the familys loved one.
Before someone dies, their funds are in good order, and they plan for their familys
future; Maxwell-Johnson Funeral Homes has a package that death can be preplanned and paid
overtime. When their death comes about their loved ones has one less worry about how they are
going to bury their beloved. Paid in full before death in increments at their desire; all up front or
in a timely cycle of their choosing. They can miss payments just as long as the money is paid in
full prior to death. The company will provide a full range service regardless of reason of death,
i.e. suicide, homicide, natural cause, etc This payment method will save the customer ten
percent from the overall cost.

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A daytime television commercial is an excellent choice because it is a local advertisement

and in the daytime is when people need to know about such situations. At primetime, people are
more interested in entertaining commercials versus educational. In addition, a daytime ad run
will also be cost effective. In the Detroit News and the Detroit Free Press about the local service
offerings and to educate the public of the companys existence.
In an attempt to bring in more revenue, organizations will be contracted to advise people
of a place to handle their dead. In return, they recommending organization will be compensated
when the customer elects Maxwell-Johnson Funeral Homes to care for their dead and pays in
full. Organizations, most local government, where death will likely to occur are the ideal choice
to build a business relationship. Hospitals are the number one choice because of the nature of the
firms operation. People come in dead from gunshot wounds to stopped their body from
continuing and their families are stressed out because of DTE Electric turns their power off on
the regular because their funds are tight. Customers have bad credit if they cannot pay their
electric bill however; prices are low enough for a simple burial service without the elegant
attractions. At the same time, mourning family members may know someone who is able to co
sign the credit application and take responsibility for repayments. Police stations are ideal
locations to contact in handling death also. Before the body goes to the hospital police should be
first on the scene to witness the death.
After the consolidated debt is paid off and the new debt is the only obligation left,
policies will enforce a business personality. Stability with service along with the service prices,
attempt to keep prices the same even in the worse economic environment.

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An overview of the companys business plan to reconstruct its financial value. An IPO,
Initial Public Offering was introduced to raise money, actually, to make more money. Six million
dollars was raised from the IPO to sit in a Money Market account gaining interest that is five
grand a month if the funds remain untouched. Prior to obtaining this business, the previous
owner bankrupted the company for personal pleasure. Utilizing the business credit for personal
gain and not personally liable because the corporate veil was not pierced and there was no
personal guarantee. In the next step for the business is to consolidate its debt by incurring
another bill to pay off derogatory subjects.
Instead of in house business activities, some work was contracted with an external
organization. The accounting, landscaping, and marketing were delegated to outside firms.
Employees were trained to handle other business matters for desegregated control in which they
have the power and responsibility to handle other business activities to lessen duties for the
upper management.
One building and three limousines were sold in an auction to generate more cash and to
limit obligation to some assets so cash can be more effective to the business needs. Building
were repaired to improve the business atmosphere and to bring quality to the company.
To reiterate the training for the employees there became responsibilities for them also.
They have to keep the properties clean and tidy also to rid the business of neglect objects. In
addition, employees were responsible to keep themselves in a professional attitude.
Ten percent savings with incentivizes was offered to customers along with a line of credit. If
their personal credit score qualify them by a certain standard. Advertisement will be the

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companys voice to the community. Organizations were contracted where death will likely to
occur, to increase the companys revenue. Services were revitalized for brand recognition

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References
Asset Acceptance Capital Corp. 2010. Returning Value to Our Credit Driven Economy. Retrieved
from http://www.assetacceptance.com
Dun and Bradstreet. 2010. Decide with Confidence. Retrieved from http://www.dnb.com
Experian. 2010. A World of Insight. Retrieved from http://www.experian.com/smallbusiness/services.jsp
Renaissance Capital. 2010. The IPO Experts. Retrieved from www.renaissancecapital.com