Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The students are to select two non-financial Private Equity (PE)/ Venture Capital (VC) backed IPO companies belonging to the same industrial sector in the US.
The students are to select two non-financial Private Equity (PE)/ Venture Capital (VC) backed IPO companies belonging to the same industrial sector in the US. You can use Bloomberg database, to find US non-financial PE/VC backed companies that went public between 01/01/2012 and 31/12/2018. One of these two companies must be financially successful and thriving nowadays. The other company should be bankrupt or on the verge of bankruptcy and the financial managers are asked to provide a thorough analysis on the following questions:
- 1. Provide a brief description of your companies' business, major products, markets, industry sector, founding year, founders, private equity/venture capital providers, any important events like buyouts, acquisitions etc. before undertaking IPOs. Also, analyze the reason for going public and how the IPO proceeds will be used. The Prospectus can be used to extract this information. (You can also use SEC EDGAR https://www.sec.gov/edgar/searchedgar/companysearch.html) to download IPO prospectus.
- 2. Estimate the value of the two selected IPO companies by using two valuation methods and show your offer price for the two IPOs. Compare the offer price from your valuations with the price disclosed in the IPO prospectus. In addition, explain the reasons for choosing the valuation methods and explain why they are suitable for your companies.
- 3. Provide your own critical assessment of the reasons that led one company to prosper and the other company to fail
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Company Descriptions and IPO Analysis Successful Company Company A Business Description Company A founded in 2008 by John Smith and Jane Doe operates in the technology sector specializing in cloud c...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started