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This hypothetical case study assesses whether PharmCorp (an assumed name), a closely held pharmaceutical company, owned and operated by family members and friends for the past 10 years, should issue an initial public offering to address its twin intractable problems that it is currently facing. First, it has outgrown its capacity to deliver sustainable exceptional performance and needs to retool its long term strategic and operational goals. Second, and just as important, is that tensions have been brewing under the surface among the owners about the existing make up of the company's ownership and compensation structure. As a result, the company has reached a critical point where it has to resolve these burning issues sooner than later. After much deliberation, the owners finally agreed that it is in everyone's best interest to use the market as the final arbiter and issue an initial public offering to address these problems. The owners were left with no better alternative and decided to take their company public to secure additional financing they need to revamp and expand the company's existing operations. While doing so, they also planned to explore whether they should issue shares through underwriters on either a guaranteed price or commission basis. In addition, they agreed to use the market as a catalyst to align the existing ownership and compensation structure with their respective contributions in creating additional value to the firm. This case has a difficulty level of five and can be analyzed by senior level business or first year MBA students. Students will be required to assess the company's opportunity cost of capital and the value of the firm before competitive bids are solicited by the firm from investment bankers and recommend solutions. In addition, students will be asked to offer suggestions on how the markets can be used as a vehicle to resolve the conflicts of among the owners about the makeup of the company's ownership and compensation structure. The case is designed to be taught in three class hours and is expected to require five hours of outside preparation by students.