Advantages / Disadvantages of the IPO Decision There are considerable advantages with obtaining equity through the IPO process. There are‚ however‚ some drawbacks that also need to be taken into consideration. Some of the advantages and disadvantages are: Advantages | Disadvantages | * Equity value is established for the firm * Current shareholders can diversify personal portfolios | * SEC requires public disclosure of financial information (transparency) * IPO expenses | * Liquidity
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C1. Alibaba.com 1. Alibaba.com was an early entrant into the B2B portal market in China. In about 100 words‚ explain how this might have created a lock-in effect‚ especially given the types of businesses he site attracts. Alibaba.com does translation as well as listings for small to mid-sized businesses who want to do business. In so doing there is a lot of time and effort put into this business venture by these businesses. Once they are established and have spent the money to get there they
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alternatives include issuing sort term bonds‚ forming a joint venture‚ and completing an IPO. Considering the pros and cons of each option while heeding the concerns and preferences of the Prada family‚ GCP recommends the board pursue an IPO. Outlined in this memo the board will read the rationale behind pursuing the IPO as well as information on alternative options. Luxury Goods – Market Outlook To become an attractive IPO option for investors Prada needs to demonstrate it has the correct market position
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world. eBay has became the dominant online trading platform‚ and with a strong presence in most of the major Internet markets. In many markets‚ eBay has little direct competition. However‚ when Yahoo entered the Japanese market and dominates the auction business rapidly ( Haberberg and Rieple‚ 2007)‚ eBay firstly had failed in Japan ‚ and decided to close the Japan website in early 2002. Meanwhile‚ the company turned around economic center to the Chinese market. Despite eBay had built in China in
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The Blackstone IPO 1. If you were a fund LP how would you view the structure Blackstone has put in place to go public? IPO offered Blackstone certain advantages: - Access to the capital markets‚ as a new source of funds. - Blackstone could also use its own stock for the acquisitions. - It changed compensation structure and provided more incentives to junior management and help to keep top employees motivated long-term. Blackstone decided to adopt the MLP
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allows sellers to refuse to sell products at prices mistakenly marked. Advertisements can also be considered offers in some specific cases. Auctions are sometimes invitations to treat which allows the seller to accept bids and choose which to accept. However‚ if the seller states that there is no reserve price or the reserve price has been met‚ the auction will be considered an offer accepted by the highest bidder. A proposal is an expression of willingness to do contract on certain terms‚ made
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Top of Form Netscape IPO Introduction The case analyzes the Initial Public Offering (IPO) of Netscape Communications Inc.‚ in order to recommend a justifiable share price for the IPO. Founded in April 1994‚ Netscape Communications Corporation provided a comprehensive line of client‚ server and integrated applications software for communications and commerce on the Internet and private Internet Protocol networks. The primary revenue generator for Netscape at the time IPO was it ’s Internet Browser
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their willingness to talk with their customers about improving the service and the website. One example of improving the service showed up on C-306 of the case. It took place "when eBay introduced a feature that referred losing bidders to similar auctions from other eBay sellers‚ eliciting a strong outcry from the community. Sellers demanded to know why eBay was stealing their sales " One man complained in his listing how "eBay’s new policy of screwing the folks who built them." Basically‚ this
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integrated into our modern culture and society during that time. In 1995‚ Netscape‚ an early leader and innovator in the Internet and WWW software and web browser market‚ had been going through the initial public offering (IPO) process. Specifically‚ on August 8‚ 1995‚ Netscape ’s lead IPO underwriters recommended to the Netscape board to increase the initial offering price to $28 per share from $14 per share‚ a 100% increase. At this new offering price‚ the firm ’s value would be $1 billion‚ raising
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Shelley Rushing SeaWorld IPO Week 5 SeaWorld Entertainment Inc.‚ was wholly owned by the Blackstone Group L.P.‚ before SeaWorld went public. SeaWorld owns eleven theme parks in the United States and attracts about 24 million visitors (market watch). As noted above they are in the theme park industry just like Disney and Six Flags with a proven business model and plenty of room for growth. It offers strong consumer value proposition and caters to a broad range of guest from all over the world
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