When a privately held company first goes public and sells shares to the public, that’s known as an initial public offering. Some IPOs are legendary. Many banks, telecom and social media giants had record-setting IPOs that people still talk about today.
Not every company is so lucky. Even some highly anticipated IPOs don’t live up to expectations. Some of the biggest IPO flops date to the dotcom boom of the late 1990s and early 2000s. Many of these were innovative ideas designed to disrupt a dated way of doing business.
One of the best examples of an IPO gone wrong is Pets.com. During the late 1990s, Pets.com launched as an online pet supply store. Though it had several competitors in the space, this company also had lots of momentum. Its mascot connected with customers in a big way, making it into the Macy’s Thanksgiving Day Parade.
In the late 1990s, Pets.com attracted investment from internet giants like Amazon. Its IPO in 2000 raised over $80 million. Yet this company still ran into trouble. Sales of staple products like bulk food were slow, in part because shipping was so expensive. Stock prices went from a high of $14 to a low of 22 cents. Pets.com went bust just nine months after the IPO.
During the early aughts, Vonage was the biggest name in VOIP in the United States. The company was growing quickly, and attracted lots of investment. The downside of this rapid expansion was that Vonage struggled to scale up, losing money from 2001 to 2006. Vonage decided to raise money by selling stock.
The IPO raised over $500 million. On the surface, it looked like a success. However, Vonage had taken a new approach. In addition to offering shares to investment firms and qualified individual investors, Vonage offered shares to users. On the day of the IPO, a glitch for Vonage customers caused trouble.
Customers were told their transactions hadn’t gone through. Days later, charges hit their accounts. The charges were for the initial stock price of $17. However, in the time between the glitch and the finalized purchases, the stock had lost 30% of its value.
IPOs should be pursued with caution. These can be exciting investments, but they are notoriously hard to evaluate. Even companies with lots of momentum can have rocky IPOs.
When a company goes from private to public, that process is known as an initial public offering, or IPO. IPOs are a great way for companies to grow. Private companies have few investors. They may have been funded by the founders, some family members and friends. Some promising private companies may also attract angel investors.
An IPO is a great way for a company to level up. Selling new shares means there will be more money available to pay down debt and fund new research. Initial public offerings can also attract lots of media attention. They can also be a great marketing tool.
IPOs are also one way that founders and early investors in a company can monetize their own shares. By selling off some of their stock, they can transform the estimated value of their company into cold, hard cash for the first time. For example, when Facebook went public, Mark Zuckerberg sold some of his own shares and made over $1 billion.
The process for an IPO is fairly complicated and can take six months to a year. First, companies need to get at least an investment bank on board. Sometimes, multiple investment banks are involved. They may work together as a team, or each bank might work alone under their own power.
The next step is to meet with the SEC. Everyone must attend these meetings: lawyers, underwriters, company management and auditors. These meetings are crucial. They will determine the size of the initial public offering and how it is timed.
After this meeting, lots of due diligence is required. This includes market due diligence, legal due diligence and IP due diligence. When the due diligence is complete, the S-1 Registration Statement can be completed.
An S-1 Registration Statement is very detailed, including historical financial information, risk assessment and more. Once it’s ready, a pre-IPO meeting is held so bankers and analysts can learn about the IPO. This also educates them on how to sell it to people. A preliminary prospectus might also be prepared.
Market research is conducted to figure out how investors feel about the company, and what price they would be willing to pay. Managers will meet with investment bankers to settle on a final price. Then, shares are allocated to investors by investment banks, and the stock starts to trade publicly.
This article will explorer the challenges of entering the field of Private Equity Investing. This field has become a sought-after industry. As a result, it can be difficult to become an associate. To begin with, private equity firms look to hire entry-level staff who have a minimum of two years of experience as an investment banking analyst. In comparison to investment banks, associates that work at private equity firms are notorious for working long hours. This is common when they’re closing a deal.
Another qualification to become an associate is their education and training. In addition to the required experience is having a bachelor’s degree. The degree can be in finance, accounting, statistics, mathematics, or economics. It isn’t common for private equity firms to hire straight out of college or a business school. The exception is if the student had a private equity internship. Some private equity firms reach out to former management consultants to fill a position. Another commonality to fill a position within the firm is networking. Some companies have their preferred choice of headhunters to assist with fulfilling a vacancy.
A key factor to becoming considered for this small field is the expectation of handling the required duties. Together with experience, leadership is another major positive in any candidate. An associate will be expected to handle analytical model, portfolio company monitoring, reviewing CIMs (confidential information memorandum), and fundraising. From the aforementioned, the primary function that’s expected from the associate is to provide analysis to the principals and partners to make an informed decision about the deal. A common task would be setting up preliminary due diligence reports and modeling the expected growth forecasts.
Many people explorer the opportunity of entering this field, because of the salary and compensation. This is another reason for the competitiveness and difficulty of becoming an associate. It is not uncommon for first-year associates to make up to $250,000, and with a bonus of 25-50% off their base salary. The typical protocol for working your way up the firm is starting off as a Senior Associate, then Vice President/Principal, and finally as the Director/Partner.
In summary, a private equity associate is expected to participate in deals from inception to closing. The work is satisfying and financially rewarding.
When a company has an IPO (initial public offering), it means that the company is offering shares to the public for the first time. Companies can choose to go public for several reasons, such as they need capital, the company wants to invest in further growth. In some cases, they go public to allow owners to exit the company. While some of these might sound bad, it can actually be a very good thing for employees.
A perk for employees is that they might be given shares as compensation, or the chance to buy shares in the company.
After the IPO is in effect, the price of the share will likely rise, and the employee will have benefitted by purchasing the share at a much lower price. This rise gives employees an advantage if they choose to sell or keep their shares. If the company’s shares continue to do well in the market, then there is the possibility that the employees will be offered bonus shares at an advantage not given to the public. Tech companies are a prime example of an IPO working out extraordinarily well for employees, such as those who worked for Google and Facebook.
Employees should take advantage of shares offered, as it is a great way to make extra money, and there are virtually no downsides. These type of shares have even created millionaires.
While day to day operations will likely remain the same for general employees, those who work in finance and human resources will probably have a change in workload for a period. There will be new business complexities that will have to be implemented and honed to keep the company running smoothly. The company will also be responsible for SEC filing and complying with SOX.
There are some things that will change in the chain of command as well. A board of directors will be implemented into the company to ensure that decisions made will benefit the shareholders. This has the potential to change the leadership style and perhaps the workplace environment.
The company will also likely hire new employees to keep up with the demands that come with being a public company. So current employees can expect team growth.
In conclusion, going IPO will not change much for employees and can even be beneficial.
Although private equity funds and hedge funds play a similar role in the investing world, they both function in very different ways. Most hedge and private equity funds cater to the wealthy. They typically set their investment minimums at $250,000. Return-on-investment is the primary goal of both types of funds, but the way they achieve high ROIs is not the same.
Hedge funds typically invest in liquid assets that can deliver returns as fast as possible. The funds then use those returns to invest in other assets with immediate promise. Hedge fund analysts invest in an assortment of asset classes, including stocks, bonds, currencies, credit derivatives and commodities. Whatever investment can deliver the highest returns in the shortest time possible is a target for hedge fund managers. The bottom line is managers look for profit in any market.
Private Equity Funds
On the other hand, private equity funds typically invest for the long term. For the most part, these funds put money directly into a company hoping to achieve long-term returns. Many of these funds target distressed companies and try to gain a controlling interest through stock purchases. Instead of breaking up the distressed companies and liquidating their assets, private equity funds will attempt to turn the companies around by streamlining their day-to-day operations or making management changes.
The key difference is private equity funds maintain a long-term outlook while hedge funds look for quick returns. Additionally, investors in private equity must commit to their investment for a certain period of time whereas hedge fund investors can liquidate their investments at any time.
Both funds maintain a level of investment risk. However, since they both cater to wealthy investors, they mitigate risk by hiring highly-regarded professionals with a proven track record of delivering returns. They also implement proven risk management solutions that are built to withstand volatile markets. However, most financial experts agree that hedge funds are riskier since the focus is on quick returns.
The Bottom Line
Investors should keep in mind that hedge funds and private equity funds do not have the same level of protection as investing in securities. The majority of private equity funds invest in companies that are not traded on the open markets and not subject to the rules and regulations of the Securities and Exchange Commission.
Reducing the use of plastic grocery bags is imperative to improving the environment. Plastic grocery bags find their way into animals’ habitats and end up killing many animals every year. Reusable grocery bags are an excellent way to reduce the use of plastic bags, and they are cute accessories as well! Let’s look at the best reusable grocery bags.
BAGGU bags are a great reusable bag option. They are sturdy, with wide carrying straps for comfortable carrying. The bag is foldable and comes with its own storage pouch, which makes it easy to throw into a purse or your car when not in use. It can hold up to 50 pounds of groceries. It is made from ripstop nylon, comes in multiple colors, and is sewn very well.
BeeGreen Reusable Grocery Bags
BeeGreen reusable grocery bags come in sets of five at a time. For these sets, you have the option of choosing one color or different colors for the bags. Multiple colors make it easy for you to organize your groceries put them away when you get home. They come with an integrated square pouch that the bags can fold into, making storage a breeze. They are sturdy and rip resistant. They also come with a one-year warranty! These can also hold up to 50 pounds of groceries.
Flip & Tumble 24/7
The Flip & Tumble 24/7 features wide straps that are triple stitched to ensure they hold. They also have a felt pouch that holds them onto your shoulder. The bags fit into a stretchy pouch when not in use, which forms a ball shape, to make storage compact and convenient. These bags can hold up to 35 pounds.
Tandi Zippered Shoulder Tote Bag
The Tandi Zippered Shoulder Tote Bag is not only great for carrying groceries, but it is also very stylish. The interior is made of nylon and has a PVC cover, which makes the bag easy to clean. The cover comes in many fun designs. It has two compartments, one large section to hold groceries and a smaller zippered section on the front. The bag folds down to wallet size.
Reusable grocery bags are becoming more popular as efforts to limit the use of plastic bags increase. Being environmentally conscious doesn’t have to be boring; choose a design and style that suits your needs and aesthetic, and you can be stylish and eco-friendly when you shop.
Many people claim that neighborhoods aren’t quite what they used to be. There was a time when everybody knew the names, children, occupations, and birthdays of each neighbor. As time has gone on, the perspectives have changed, and instead of reaching out to neighbors, families instead tend to rely on each other to get through hard times.
However, just because families now are more self-sufficient, that doesn’t mean we can’t help one another. For those who want to lend a helping hand and bring back that old neighborhood feeling, one can easily do so by looking after one’s neighbor if they’re ever ill or injured. With a few simple gestures, you can improve your relations and bring back the kind of neighborly connection that once existed.
The first step is to ask your neighbors what they require help with. By and large, they’ll likely deny the offered help, but that doesn’t mean you should just leave them to their own devices. Nine times out of ten, it’s just their pride talking.
Instead of giving up, gently affirm that you wish to help them in a way that won’t hinder them or compromise their independence. Once they open up a bit, you can establish a plan of action. Whether they need to mail a package, mow the lawn, or do the dishes, you can base your actions on what they need most, but you won’t know what that is until you ask.
If the neighbor is the one who primarily does the cooking in the house, a great benefit that can be offered to them—and their family—providing a few meals. Whether it’s once a week, on the weekends, or even just an ordered pizza now and then, removing the need to cook at least one less meal allows the sick neighbor to relax and enjoy a delicious meal instead.
A lot of sickness and injuries can be made all the better by filling the body with nourishing food. By finding out just what ails them, one might be able to cook up a steaming stew or soup that could make them feel a lot better. Provided you account for dietary restrictions and allergies, making food for a neighbor can be a great way to show how much you care.
Take The Kids Out
If the sick or injured neighbor has young children, they might feel guilty that they can’t do anything with them. The kids may be bored and suffering, too. You can fix both problems by taking the children out for the day; if it’s summertime, you might take them mini golfing, or regardless of the weather, you might pay for them to see a movie. Doing this will offer the neighbor a chance to rest without guilt or distraction. The kids will be able to enjoy themselves, too.
Helping a sick neighbor doesn’t have to entail monumental sacrifices or gestures. Showing how you care and taking time to complete tasks or provide food for the sick individual can mean the world and allow them to rest and recover.
Straws allow us to more easily consume beverages, but the ones made of plastic are not sustainable; when disposed of, they can harm and destroy the environment. Nevertheless, there are many alternatives to using plastic straws that are better for the environment.
The most innovative, alternative straw available is the Koffie Straw; it is designed from soft silicone that gives it durability and flexibility. The Koffie straws are available in two sizes and come with a tool for easy cleaning. They are also one hundred percent biodegradable. When someone is ready to dispose of their straws, they can burn them without worrying about their carbon footprint. Koffie straws are great for any beverage, hot or cold. They are also perfect for those who may be absent chewers, and they are safe for children.
The most durable alternative straws available are made of stainless steel; Green Steel offers a four-pack straw set. They are lead and toxin free, BPA free, and rustproof. Stainless steel straws are a great household accessory, but they can cause burns when used improperly. These straws should not be used with hot drinks and parents should be cautious when allowing their children to use them. Nevertheless, there are stainless steel straws with silicone tips for those who enjoy hot beverages or have children. The straw is durable and safe, and the soft tip design helps protect people from injuring themselves.
Another great alternative to a plastic straw is the glass straw; they are elegant and sophisticated. These straws are very delicate and must be handled with great care. Glass straws are not appropriate to tote around and may not be suitable for young children. Still, they are a great alternative to plastic at home or when attending a private party.
The cheapest and most easily disposable alternative straw available is made out of bamboo. They are a sustainable option to plastic since they can biodegrade. They are safe for cold or hot drinks and come in many sizes. The organic tool is versatile for those who need a straw that can be taken anywhere.
Paper straws are inexpensive and great for those interested in straws that have a one time use; they can be used in hot or cold drinks and are safe for children. Once an individual is ready to dispose of their paper straws, they can throw them away and the paper will disintegrate without causing harm to the environment.
There are many sustainable alternatives to the plastic straws we commonly use. Depending on your drinking preferences and habits, you can select the material that works best for you.
Most of the cans that pack food and other products such as soda are made of aluminum. Most families improperly dispose of their cans once they use the product contained within the aluminum cans. Failure to recycle or reuse aluminum cans results in unnecessary waste. This can be minimized or eliminated by reusing aluminum cans in creative and functional ways. Here are some of the simple strategies that can be used in recycling these cans.
Making Bird Feeding Troughs
Many people who are caring for birds spend a lot of money buying feeding troughs and water pots. Aluminum can easily be used as feeding troughs by removing either the top or the bottom and cutting across the mid-section. This will provide a cheaper and more eco-friendly alternative to store-bought troughs.
Housing Indoor Plants
A great method of decorating a kitchen or living space is by placing a few plants by windows and on sturdy pieces of furniture; doing so creates a natural environment that provides clear air and an environmental ambience. Aluminum cans will offer a better alternative to buying planting pots as they are readily available, recycled, and more affordable. Using an aluminum can to plant flowers or herbs is a smart application because aluminum containers hold water well to prevent leakages and can serve as a rustic addition to your decor.
For gardeners, labeling plants tends to be important for organizational purposes. Rather than buy markers for this purpose, you can instead use aluminum cans to make your own. You can use a metal stamp or a dull writing utensil to emboss a permanent mark, or for short-term projects, you can use stickers.
Crafty individuals may be pleased to know that jewelry made from aluminum cans can be cheap, environmentally-conscious, and attractive. By cutting the can into thick strips, attaching them with glue, and wrapping ribbon around the bands, you can make a simple bracelet to give away. These bracelets are easily customizable, as well; just add additional ribbon, charms, or fabric scraps to personalize them.
Making Cookie Cutters
Finding a cookie cutter that suits your needs can be difficult. Manufactured cutters may not be the right shape, size, or dimensions that you want. With aluminum cans, you have the freedom to make cookie cutters in any form you’d like! By cutting the cans into strips and attaching them to make an appropriate length, you can then bend the connected strips to form a shape of your choosing!
Recycling aluminum cans takes many forms, many of them both functional and fun. By repurposing the empty cans for projects like those listed above, you can help prevent unnecessary waste while also saving money.
Real estate development is a potentially lucrative field for anyone looking to invest. It takes a great leader to become a developer, as collaborating, planning, and executing a build ultimately falls back on the developer. Before you commit to diving headfirst into the world of real estate development, read this article to find out what it really takes to start.
Part 1: Pre-Construction
Although most people think of construction when they think of development, there are actually several steps that come before it. You will need to acquire financing, find legal professionals, and search for a property. Builders and architects will need to draw up plans based off of the zoning laws of the township, and the land will need to be surveyed to ensure the integrity of the land. Beyond this, there will be tons of paperwork, many fees, and constant collaboration. You will need to know where you are with each member of your team at all times, as they may not talk to one another.
Unfortunately, many people underestimate the amount of time, effort, and money all of this takes. Some developers get partway through this process and realize they do not have the funds or mental capacity to deal with a project of this size. My advice: imagine how hard you think this will be and expect it to be 10 times harder, at least. Then, you can realistically decide if this is right for you.
Part 2: Construction
If you managed to get through all of the pre-building paperwork, it is now time to move on to construction. Any experienced developer will tell you to expect construction to take several months (or even years!) longer than you planned. Construction workers can run into all kinds of problems, such as delayed materials or hitting a ground pipe. Even more frustrating than the time delay can be the money problem. Any time your construction team runs into an issue, it can cost thousands of dollars. Make sure you have enough financing to cover anything that could arise and be prepared to be patient.
Part 3: Post-Construction
Once your new house or office building is completed, it is time to sell the property or rent it out. This process should be self-explanatory, but again, make sure to account for plenty of time between the end of construction and a finalized contract. This time will also cost you money, as the development loans will need to be repaid one way or another.
Although real estate development can be stressful, time-consuming, and even risky, it is ultimately a very rewarding process. Not only will you have made a (hopefully) lucrative investment, but you will have a major project to show for it. Still, before you decide to head into a new development project, make sure to carefully consider whether or not you are equipped to handle all three parts of a development project.