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4 Cards in this Set
- Front
- Back
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Arm’s length principle |
”price that might have been expected if the parties to a commercial understanding or transaction had been independent persons dealing at arm’s length with each other in a normal commercial manner unaffected by any special relationship between them” |
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Why Do Companies Go Public? |
•Fund Growth Plans •Currency for M&A •Recap (retire debt) •Liquidity •Employee compensation •Enhanced Image •Landlords •Creditors/Suppliers •Recruiting/Retention |
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Transactional Issues |
• Size of Offering • Lock-ups –Who and How Long • Use of Proceeds • Legal • Misc |
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Arms length principle - can be counted on |
1. Comparable uncontrolled price 2. Resale 3. Cost plus |
