Memo: Newco's Management Team
MEMORANDUM
Subject: Newco
Newco’s management team has diverse experiences, with extensive experience in fields such as venture capital, information technology, investment banking, database development, design, and Internet applications. The management team also has strong ties to the financial industry. The connections and experiences of Newco’s management team will help to market their product to the financial corporations. One of the main client targets of the product is investment banks and financial corporations; therefore the management team’s experience in the investment banking field can help market and guide the product for successful entry into that market. Among the outside directors is a PhD holder of economics, as well as, a former lawyer from the university of Chicago that has investment banking experience as well. Both of these outside directors will be able to provide a unique perspective to the management team. On the downside, neither the president nor the founders are technically experienced in the IT field, rather most of their experience is within the financial industry, which would be a weakness to the management team considering that their product is highly technical.
After reviewing Newco’s product and management team, we believe that Newco will be successful, seeing as the management team has good experience in a variety of different fields and the product they developed should have high demand in the market. The founders and president have made a significant investment in the company ($400,000), which qualifies them for having skin in the game. In the statement of operations provided in the case we can see that the salaries given to the officers, sales and marketing, and wires division are relatively low, suggesting that the management team is relatively dedicated to the company. Considering the management team’s strong academic background, their dedication, and that fact that the management team does have skin in the game, we have
Subject: Newco
Newco’s management team has diverse experiences, with extensive experience in fields such as venture capital, information technology, investment banking, database development, design, and Internet applications. The management team also has strong ties to the financial industry. The connections and experiences of Newco’s management team will help to market their product to the financial corporations. One of the main client targets of the product is investment banks and financial corporations; therefore the management team’s experience in the investment banking field can help market and guide the product for successful entry into that market. Among the outside directors is a PhD holder of economics, as well as, a former lawyer from the university of Chicago that has investment banking experience as well. Both of these outside directors will be able to provide a unique perspective to the management team. On the downside, neither the president nor the founders are technically experienced in the IT field, rather most of their experience is within the financial industry, which would be a weakness to the management team considering that their product is highly technical.
After reviewing Newco’s product and management team, we believe that Newco will be successful, seeing as the management team has good experience in a variety of different fields and the product they developed should have high demand in the market. The founders and president have made a significant investment in the company ($400,000), which qualifies them for having skin in the game. In the statement of operations provided in the case we can see that the salaries given to the officers, sales and marketing, and wires division are relatively low, suggesting that the management team is relatively dedicated to the company. Considering the management team’s strong academic background, their dedication, and that fact that the management team does have skin in the game, we have