1 / 11

Life Cycle(s) of an IPO Company

Life Cycle(s) of an IPO Company. Life Cycle of an IPO Company. MODERATOR : Megan Colwell , Senior Vice President Woodruff-Sawyer & Co. Matthew Deneen, RPLU, Senior Vice President Hooghuis Group, LLC Deirdre Finn , Senior Vice President Navigators Pro

conway
Download Presentation

Life Cycle(s) of an IPO Company

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Life Cycle(s) of an IPO Company New York City ~ February 6 & 7, 2008

  2. Life Cycle of an IPO Company • MODERATOR: Megan Colwell, Senior Vice President Woodruff-Sawyer & Co. • Matthew Deneen, RPLU, Senior Vice President Hooghuis Group, LLC • Deirdre Finn, Senior Vice President Navigators Pro • Lauri Floresca, Senior Managing Director Carpenter Moore, a NASDAQ Company • Keith Thomas, Executive Vice President Zurich Management Solutions Group • Michael Torpey, Partner Orrick, Herrington & Sutcliffe LLP

  3. Case Study YellowWire, Inc. • Headquarters: Santa Clara, CA • Founded: 2001 • Market segment: Telecom • Revenue: $8.5M as of YE05 • Management team: founders • Funding: $15M via Rounds A & B • Company valuation: $25M

  4. Reverse Merger History and Perceptions • Historical View: Checkered past in the 70’s, 80’s and 90’s with “Pump and Dump schemes”. Mergers-R-Us.com http://www.mergers-r-us.com/index.html GoPublicUSA.com http://www.gopublicusa.com/main.html “Take your private company public the easy way by purchasing a dormant, public shell company through a process known as a reverse merger...”

  5. Successful Reverse Mergers • Texas Instruments Inc. • Berkshire Hathaway Inc. • Tandy Corporation (Radio Shack Corporation) • Occidental Petroleum Corporation • Blockbuster Entertainment • The New York Stock Exchange • Frederick’s of Hollywood (1/28/08)

  6. Reverse Mergers:How Popular Are They? Annual growth trends: 200320042005 2006 46 168179 206 Q107: 53 RM’s/$3B Mkt cap = +100% growth • University of Pittsburgh study: • 91% of the companies that performed a RM are still in existence three years later.

  7. “Formerly Shady Reverse Mergers Gain Credibility”USA TODAY, 6/28/07 • New SEC rules in past five years • IPO option: larger/more established companies (Post Dotcom/IPO Bubble) • 2006: more reverse mergers than IPO’s (3) SPAC’s (Special Purpose Acquisition Companies)

  8. SPAC’s:How Popular Are They?* • 2007: 65 SPAC’s went public = $11.7B • Average deal size: $183M (vs. IPO’s @ $229M) • Pipeline momentum • December 2007: 50% of new filings were SPAC’s • January 2008: 7 of 13 new filings were SPAC’s • Currently: • 75 SPAC’s seeking acquisition/reverse merger opportunities • Flush with cash! *Data from: Renaissance Capital’s SPAC Facts, Annual Review, January 2008

  9. SPAC Statistics* 20032004200520062007 No. of SPAC’s 1 12 28 34 65 Total Proceeds $24.2M $491.1M $2.1B $3.2B $11.7B % IPO Market 1.5% 5.6% 14.4% 14.8% 23% Avg SPAC Size $24.15M $40.9M $75M $95M $183M Avg IPO Size $224M $198M $175M $217M $229M *Data from: Renaissance Capital’s SPAC Facts, Annual Review, January 2008

  10. “Traditional” Reverse Merger—Shell Company • Reverse merger option • Faster, better, cheaper? • No real capital infusion; limited liquidity • PIPE financing = funding option

More Related