online auctions such as the Dutch auction. After getting some insight about how the traditional IPO processes work verses using the alternative online process I will look at the company AVG and describe in detail which IPO process it would most benefit from. I will explain my reasons for this decision by focusing on the type of investors I believe they will likely attract as well as discuss the costs and the risks associated with each. I will also list various advantages of each IPO process
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Trident University International Module 1 Case Assignment FIN501: Strategic Corporate Finance Dr. John Halstead August 9‚ 2013 AVG Technology: Traditional IPO VS. Auction Based IPO Our nation has suffered through a recession for the past decade. Small and large businesses‚ alike‚ have suffered directly resulting in American jobs being lost‚ the national debt skyrocketing into the trillions‚ and parents struggling to keep food on the table for their children. Foresight is a trait that
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William M. Grissett November 21‚ 2012 Module 1 Case Assignment IPO Lessons FIN501 Dr. V. Vallillee What type of IPO should AVG use - a traditional IPO or an online auction? Based on your analysis and findings‚ what would you recommend to the executives of AVG? Based on research I believe that AVG should utilize the online or Dutch auction‚ where investors bid on an initial public offering before it goes public. The benefits are clear. In theory‚ a fair market price is set and the company reaps
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Early last summer‚ Avaya made the announcement that it would file for an IPO in the near future. While there is a lot of preparation and consideration that goes into this process‚ an emerging decision that corporations must also make is whether to use a traditional or online auction IPO. There are pros and cons to each type of IPO and each method may or may not be suitable to the needs and goals of a corporation. Several questions must be answered prior to the opening. What kind of profit is
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Synopsis: Google Inc. Google is a global technology leader focused on improving the ways people connect with information. Google maintains an index of websites and other content‚ and makes this information freely available to anyone with an Internet connection. Its automated search technology enables people to obtain nearly instant access to relevant information from its online index. The company’s innovations in web search and advertising have made its web site a top internet destination and
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strategy‚ especially during the looming financial crises as a result was a two-fold play. First‚ to overtake the big competitors‚ raise capital by going Dutch auction‚ and bypassing conventional bank investments that carry a high commission (Eugene‚ 2005). Instantly Wall Street firms that controlled this particular initial public offering‚ (IPO)‚
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Morningstar 1. Describe Morningstar’s business. How is the firm performing? Would you be interested in buying shares in the IPO? What steps would you take to make a bid? The market is extremely competitive. Advance of information on the internet will give access to information at lowering prices. This will hurt the business model. 2. What are the average first-day returns for IPOs? What explains these returns? Average first day returns are 13.1% from 1975 to 2004. 17% from 1960 to 2007 Reasons:
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for its first public stock sale. Since the market correction‚ many other companies with initial public offerings (IPOs)‚ such as Internet firms Barnes&Noble.com‚ uBid‚ and netValue‚ Inc.‚ had either canceled or postponed their issues. In fact‚ the past few weeks had been the quietest month for IPOs since the mid 1970s. Exhibit 3 provides the monthly number of canceled and postponed IPOs in 1998‚ relative to the number of offerings completed. Some investors speculated that eBay was likely to follow
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take to enable it to acquire BTRP in an auction without over-paying? How did Apax add value to Xerium? Apax took a well-designed strategy to bid for Xerium. First‚ they understood it was not a competitive auction. Secondly‚ they took advantage of the momentum and circumstances of the seller that was under distress. Finally‚ they spent huge resources to analyze and calculate the value of Xerium to Apax. First‚ they analyzed the competitors in the auction. The team observed it was a very opaque
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Raising Equity Capital When a private company decides to raise outside equity capital to fund there firm‚ they can turn several potential sources‚ these include Angel Investors‚ venture capital firms‚ institutional investors and corporate investors. Angel investors are individual investors who buy equity in small private firms (often friends of relatives) and are usually the first round of outside financing typically receiving a sizeable equity share. Venture Capital Firm (VCF) is a limited partnership
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