down the road and base it off of performance. The biggest disadvantage of raising the extra cash in the IPO includes the agency costs of excess cash. The extra cash may encourage management to act carelessly. The extra cash will also earn a small return unless invested in income producing assets. At best, cash and short-term investments are a zero NPV investment. The advantages of the increased IPO size include the increased liquidity for the company, and the lower probability that the company will
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Wiki Loves Earth has come to Australia for the first time. Upload your photographs of our unique natural environment, help improve Wikipedia and win some great prizes along the way! ------------------------------------------------- Alibaba Group From Wikipedia, the free encyclopedia For the character from the Arabian folk tale, see Ali Baba. Coordinates: 30°11′31.12″N 120°11′9.79″E Alibaba Group Holding Limited | | Type | Public Company | Traded as | NYSE: BABA | Founded | 4 April
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market.How incentives side tracked rational decision ---------------------------I. Venture Capitalists: • To provide high rate of return to their investors, VC’s typically sold their stake in their portfolio companies either to the public through an IPO, or toanother company in a trade sale. • The partners in a VC firm typically had a substantially percentage of their net worth tied in their funds, which aligned their interests with their investors. • The main form of compensation was large share
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quarterly internal rate of return (IRR)—the primary measure of VC success—was dismal, hovering in the single percentage points and sometimes dipping into negative territory. Many firms have struggled to market new funds. Their main sources of profitability—IPOs of their portfolio firms—are fewer and farther between. Their backup strategy—selling their portfolio companies to other firms—is getting tougher and the prices are falling. Investments that once generated cash after just two years now take six
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CASE STUDY: Strategic Capital Management ------------------------------------------------- NOTES SCM LLC 12.9.1998 – Elena raised $20 million for her new fund Interested in Ubid, recently had an IPO—lucrative Internet-sector investment? Mandate of generating 10% annual returns charge investors 2% management fee of assets under management an incentive fee equal to 20% of profits. Mandatory minimum investment horizon of 2 years Ubid & Creative Computers creative computers – a catalog
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distributed. Value can only be provided through this means. Stock price is subject to broad fluctuations and in 2013 ranged from $19 to $40. $ Balance Sheet A large amount of cash is on hand as of September 30,2014. The balance sheet takes the Alibaba IPO into account in which Yahoo sold shares. This large increase in cash flow from $2 billion to $10 billion does not come from core operations whatsoever. At the 3 months ended September 30,2014 cash went from 2 billion to over 10 billion in that short
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decision. Decision One - Go Public with an IPO If NN were to go public and have an initial public offering, many benefits would arise. First, the company would receive instant capital funding. Given their financially problematic history, financially uneasy present, and robust growth plans NN would be able to settle many of their financing issues and reduce their worry of compromising their product for the sake of costs if they were to go public. An IPO would also allow the managers to remain in
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possibility to bring the organization to financial ruin. An effective executive must weigh the chance of success with the absolute possibility of failure. Going Public through an IPO An option for Huffman Trucking to consider for expansion of its operations is going public through an initial public offering, or IPO. Offering a distribution of Huffman’s shares to the public will help the company acquire new capital for reinvesting back into the company, and allow a return to the public capital
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public offering. However, soon after it was submitted, the NASDAQ stock market fell 25% to 3,794, making it more difficult for a company’s IPO to succeed with uncertainty in the financial markets. In July 2000, Reed Hastings, CEO of NetFlix, needed to decide whether the compnay should proceed with the IPO or withdraw it. Investment banks predicted that the IPO of NetFlix would succeed if it showed positive cash flows within a twelve-month horizon, but the executives at NetFlix were unsure whether
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company whose plans for listing or further growth will use an initial public offering (IPO) as a method to generate capital needed for expand. IPO is the first sale of stock to the public by a company. (CNBC, 2012) On the others sides, private company whose plan to go listing is for several purposes or benefits. For instance, the public company able to raise their capital by using IPO, simultaneously, a success IPO is an accelerator towards your company expansion. According to Bursa Malaysia listing
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