Goldman Sachs IPO Case

ells Fargo Businessmen in New York establish Wells, Fargo and Company, destined to become the leading freight and banking company of the West.

The Cost of debt is determined by using the average of YTM of the 4 JetBlue debt instruments provided in Exhibit 4. The exact value is 6.91%, and a CAPM cost of equity is determined to be 10.50% using the risk-free rate, market risk premium and comparable beta from Southwest of 1.10. The cost of capital is determined to be 6.90%. Running the DCF analysis, JetBlue is currently valued at $2.7bn. Distributing equity value over the shares outstanding gives a share price of $66.51. This proposed price of the IPO is highly overpriced, considering that the underwriters have priced it within a range of $22-$24.

Palamon Capital Partners/Team System S.p.A Introduction and Recommendation In 2000, Louis Elson, managing partner of the U.K. based private equity firm, Palamon Capital, is pondering acquiring a 51% stake in TeamSystem S.p.A for the growth opportunity that TeamSystem possesses, hoping that such move would increase his firm’s presence in the increasingly competitive international private equity market. Even though Palamon has the opportunity to acquire the 51% state, Louis Elson must convince his colleagues at Palamon about what 51% stake is TeamSystem is really worth, how the deal would benefit Palamon standing both financially and in the equity market and whether Palamon Management should go ahead and make the investment considering both financial and non-financial implication of the deal.

That the share price has been so volatile is a measure of the risk in instigating an IPO in relatively uncharted waters.

Tidal Community bank is a success business for a period of time until the day the management realized that the growth has been slow down and to maintain the growth, Matt, chairman and CEO and John, president and COO, have decided to expand their market by acquire a bank in a larger metro area. While both John and Matt, as well as Granary’s management believe that this will be a right direction for the long term development of the bank, Eagleeye, the largest investor and other institutional investors do not have the same opinion on the expansion plan. They believe that the strategy to success in a local community area will not be the same as in a larger metro area, which means they will receive an undesirable outcome.

DOLLARAMA LBO TO: BAIN CAPITAL FROM: ANALYST GROUP MICHAEL MALO SEBASTIEN HUBERT IVANINA MINCHEVA SUBJECT: INVESTOR RETURNS DATE: NOVEMBER 20th, 2004 DOLLARAMA LBO TO: BAIN CAPITAL FROM: ANALYST GROUP MICHAEL MALO SEBASTIEN HUBERT IVANINA MINCHEVA SUBJECT: INVESTOR RETURNS DATE: NOVEMBER 20th, 2004 TABLE OF CONTENTS INTRODUCTION 4 INDEPENDENT VALUATION OF DOLLARAMA 5 POTENTIAL IMPROVEMENTS TO DOLLARAMA OPERATIONS 11 RECOMMENDATION 17 APPENDIX 19 INTRODUCTION We are a group of consultants from Montreal hired by Bain Capital to

III. Buying influence or engaging in conflicts of interest: Goldman engaged in activities were the companies and their customers’ interest conflicted. Still they moved forward in making money off them. Also, although not specifically stated on the case, the fact many formers Goldman executives held government positions proved to be a conflict of interest itself. Some of those people still had strong relations within Goldman and it can be said that one way or the other Goldman took advantage of that.

What is up with Wall Street? The Goldman Standard and Shades of Gray Introduction The problem to be investigated is the application of business ethics. In the business world, ethics are extremely important. Ethics are prime elements that help a business to grow and to become more productive. It is by applying

4. The article said that K12 was the closest comparable company to Rosetta Stone. Rosetta Stone is marketable to a larger consumer base than K12, so I think that it should be able to charge a higher IPO. The case said that book was more than 25 times oversubscribed during its road show which means Rosetta Stone could charge a much higher price. But these subscriptions are volatile and the economy is recovering, so a price too high could deter many investors. For my analysis I took the EBITDA margin for years 2006-2008 and found the average increase during that time to be 9.93%. I then took the estimated share value from 2008 and multiplied it by 1.0993 to factor in the average increase in share value. This resulted in a price of $19.22. Given this number I would increase the current range from $15-17 to $19-24. The reason for the increased range is because of the

Assignment 1 Q1 – What was up with Wall Street? The Goldman Standard and Shades of Gray.

Nasdaq case Q1: What role do market makers play in the trading system? How do they profit from this role? How do the market makers compete with one another?

(1) According to the case, global IPO activity during the first quarter of 2012 fell to $14.3 billion, which was dramatically down from $46.6 billion during the first quarter of 2011. In addition, we can see in Exhibit 5 that IPO activity in US have dropped sharply since the second quarter of 2011. Number of deals dropped from 383 in the second quarter of 2011 to 157 in the first quarter of 2012.

Group Case: JetBlue IPO Valuation
Finance 6806, Fall 2014

Abrar Khayyat
Rajesh Maraj
Veronica Paez

November 10, 2014
 Problem Statement Only two years in existence, Jet Blue decided to become a public company and issue an initial public offering. Jet Blue’s decision came in 2002, just as the airline industry experienced a substantial downturn following the terrorist

There can be a number of reasons for a company to go public or private. There are benefits, as well as disadvantages that go along with either course of action (Exhibit 1 for details). When firms decide to go private, they are no longer listed on any stock exchange market. The pressure of keeping accounting regularity and reporting to the public is no longer an issue. Instead, firms can be more flexible to reorganize the business profile as well as the management team. In many cases, shareholders and board members receive very rewarding financial benefits from this transaction. However, in some situations, public firms do not have a choice in the matter, as is the case in a “hostile takeover”.

In 1993, 5 “H” This is the twelfth H-share issue on the HKEX. Total 1,080 million “H” shares would be offered and the total market capitalization is HK$1,575 million.