Essay on Trx Finance Case
Melissa Gottschall, Jillian Marchand, Scott Duggan, Cary Konopka, Blair MacLaughlin, Jake Baker
1) In general, what attributes make a company a good candidate for an IPO?
- Good Business History and Background: Investors will forecast future earnings off of the historical background of the company. It will also show that your company is stable. Many investors will be looking to hold the stock long-term, so if investors trust the background of the company, more people will be willing to invest.
- Experienced Management: Good management can ensure that the company will make decisions that are best for the company and to ensure profitability. Also, good management is the basis …show more content…
TRX has an impressive investment banking team and support from it’s majority shareholder to wait for the right time to issue. They are also in the middle of initiating new cost cutting objective and getting away from customer care platforms, which provide little return. With that said, investor demand at a better price might be more achievable if the firm was to take on some leverage, cash out Hogg Robinson, improve performance and wait to see if the market becomes less volatile. 4) Summarize IPO