This document discusses recommendations from an IPO Task Force to address the decline in initial public offerings (IPOs) of emerging growth companies in the United States. It summarizes that IPOs have declined significantly in the last 15 years, reducing an important pathway for innovation and job creation. The task force identifies challenges such as increased regulation that raises costs, a channel focus on high-volume trading over investing, and weak links to investor demand. It proposes four recommendations - create a new category of emerging growth company with scaled regulation to increase supply; improve availability of information to investors; educate issuers on working with banks; and provide a tax incentive for individuals to buy and hold IPO shares to incentivize demand.
IPO Bound? New Strategies, New Ideas and Tips for Success RoseRyan
Moving down the track to an IPO is not for the faint of heart. There are myriad requests and complex requirements—and now with the JOBS Act, companies face even more decisions. These slides by legal, audit and accounting experts in Silicon Valley deliver straight-from-the-trenches advice on what it takes to get your IPO right and are drawn from a RoseRyan seminar.
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
IPO Bound? New Strategies, New Ideas and Tips for Success RoseRyan
Moving down the track to an IPO is not for the faint of heart. There are myriad requests and complex requirements—and now with the JOBS Act, companies face even more decisions. These slides by legal, audit and accounting experts in Silicon Valley deliver straight-from-the-trenches advice on what it takes to get your IPO right and are drawn from a RoseRyan seminar.
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
Everything about Performance Equity Compensation (or as much as fits into an ...PERFORMENSATION
The use of performance-based equity is on the rise. This presentation discusses how to select metrics, set goals,and design a plan. It also covers communication, accounting and administrative concerns.
Presented to BACA (Bay Area Compensation Association 10/21/2010)
Mercer Capital's An Introduction to Dividends and Dividend Policy for Private...Mercer Capital
Dividends and dividend policies are important for the owners of closely held and family businesses. Dividends can provide a source of liquidity and diversification for owners of private companies. Dividend policy can also have an impact on the way that management focuses on financial performance.
eXp Realty, “The Agent-Owned Cloud Brokerage™”, is a full-service real estate brokerage providing 24/7 access to collaborative tools, training, and socialization for real estate brokers and agents through its 3-D, fully-immersive, cloud office environment. This effectively reduces agents’ overhead, increases their profits, and provides greater service value to consumers.
Considerations for a sustainable corporate venture program by Robert Ackerma...the Hartsook Letter
Reputation is Key to the Success/Failure of a CVC Program
* Corporate Venturing is Here to Stay
* Increased Scrutiny Requires Deliberate Steps
* Model will Evolve Based on Lessons Learned
* Working with the Venture Community is Critical
* Every Transaction, Every Engagement, Every Partnership contributes to the Corporate Reputation
This white paper introduces Armanino’s CFO Evolution thought leadership research. It defines a framework for consideration by CFOs and the key people within their organization as they think critically about their organization’s challenges and goals.
Explores:
-IPO Process
-Impact of JOBS Act
-Quiet Period
-Management
-Board of Directors
-Corporate Governance
-Corporate and Capital Structure
-Equity Incentives
-Financial and Audit Matters
-Getting Started
-SEC Review
-Life as a Public Company
Everything about Performance Equity Compensation (or as much as fits into an ...PERFORMENSATION
The use of performance-based equity is on the rise. This presentation discusses how to select metrics, set goals,and design a plan. It also covers communication, accounting and administrative concerns.
Presented to BACA (Bay Area Compensation Association 10/21/2010)
Mercer Capital's An Introduction to Dividends and Dividend Policy for Private...Mercer Capital
Dividends and dividend policies are important for the owners of closely held and family businesses. Dividends can provide a source of liquidity and diversification for owners of private companies. Dividend policy can also have an impact on the way that management focuses on financial performance.
eXp Realty, “The Agent-Owned Cloud Brokerage™”, is a full-service real estate brokerage providing 24/7 access to collaborative tools, training, and socialization for real estate brokers and agents through its 3-D, fully-immersive, cloud office environment. This effectively reduces agents’ overhead, increases their profits, and provides greater service value to consumers.
Considerations for a sustainable corporate venture program by Robert Ackerma...the Hartsook Letter
Reputation is Key to the Success/Failure of a CVC Program
* Corporate Venturing is Here to Stay
* Increased Scrutiny Requires Deliberate Steps
* Model will Evolve Based on Lessons Learned
* Working with the Venture Community is Critical
* Every Transaction, Every Engagement, Every Partnership contributes to the Corporate Reputation
This white paper introduces Armanino’s CFO Evolution thought leadership research. It defines a framework for consideration by CFOs and the key people within their organization as they think critically about their organization’s challenges and goals.
Explores:
-IPO Process
-Impact of JOBS Act
-Quiet Period
-Management
-Board of Directors
-Corporate Governance
-Corporate and Capital Structure
-Equity Incentives
-Financial and Audit Matters
-Getting Started
-SEC Review
-Life as a Public Company
Real estate investment is a good avenue for building wealth, provided that you choose the right location and property to invest in. With the Philippines' robust economic growth, swift increase in foreign investment, and reform-minded government, buyer and investor confidence is at its peak, especially for office space and buildings in major business districts as well as luxurious residential spaces and condominiums. http://kmcmaggroup.com/blog/2013/9/5/infographic-an-investors-guide-to-metro-manila-real-estate/
KMC MAG Group is pleased to present to you the Metro Manila Property Outlook for 2015, which offers the latest data, research, and forecast on the Philippines' top central business districts (CBDs) and emerging CBDs in Metro Manila. Some of the report's highlights:
With a GDP growth of 6.1% and strong macroeconomic fundamentals, the Philippines remains as one of the bright spots in both the global and regional scale.
Driven by strong economic performance, the real estate market is expected to remain buoyant across all sectors this year. Real estate activity remains to be in full swing, with developers allocating massive capex programs amounting to over PHP 300-billion into building townships across the city.
The office sector is still the most wanted asset class, with its robust rental growth due to high take-up from the business process outsourcing industry.
The retail sector also continues to be the top gainer among all sectors, further boosted by the declining oil prices that has increased savings for the economy.
Meanwhile, in the residential market, rates continue to grow although at a more modest rate as well as in hotels and leisure, whose long-term growth is being stifled by lack of sound infrastructure.
In spite of these opportunities, the Philippines' strict foreign ownership policies and lack of solid infrastructure remain as roadblocks towards sustainable and long-term growth for PH economy.
2014 Real Estate Market Update and 2015 Forecast PhilippinesKMC Savills, Inc.
What's next for Philippine real estate? The sentiment on the Philippine economy remains generally positive. Despite the slowdown, the Philippine economy is still seen as the fastest-growing among the ASEAN-6, as it claims the highest GDP forecast in the region for 2014 to 2015. It is likely to trail behind China (or even India) as among the robust economies in Asia. And it looks like the expansion and growth of the local economy will continue through next year.
The property market in the Philippines is still in a sweet spot. This year, we have seen some big investments rise from the ground with local developers and foreign investors creating a new landscape, doing their best to deliver to the increasing demand and activity in the market. Metro Manila's central business districts and other prime locations in the city have become home to new residential communities and have been the hot spots for expanding office developments and booming retail markets. The third quarter property market update reflects high investor confidence. With the upcoming developments and launches and ongoing constructions, the industry is in an upward spiral. The office market is the most active and popular of all the assets and property types. Residential real estate hasn't lost steam, although market interest is shifting towards the lower segment. The steady flow of OFW (overseas Filipino workers) remittances, booming IT-BPO industry, increasing domestic demand, and growth in tourist arrivals over the next few years drive growth in the property market. With the Philippines' fast-growing economy, it is slated to become a top real estate market in the coming years.
Office market
It's a landlord market for the office and commercial property sector, and it is likely to stay this way because of the shortage in supply. The office market has an impressive third quarter performance. We can see an early upswing for the office market and commercial property sector. There's an increasing demand and decreasing vacancy, resulting in a price increase. In central business districts, there are single-digit vacancy rates below five percent. Take-up is rather impressive. We can see new and upcoming supplies putting some pressure on rental prices and vacancy rates. However, rental growth will be at a more conservative pace. As prime office supply in CBDs stays low through 2016, the demand in the leasing market and interest particularly on serviced offices will be sustained, especially with the IT-BPO and KPO industry's expansion and SMEs wanting to test the market first. Investors and developers should explore the idea of developing new CBDs as BGC, Makati, and Ortigas start to fill to the brim and become saturated. Great locations would be Quezon City and Bay City. CBDs can also be developed in other parts of the country, with the rise of Next Wave Cities that have turned into promising investment destinations.
ArthaLand Tower is an upcoming office development in the center of the Bonifacio Global City CBD. Contact us for inquiries on available office space for lease in ArthaLand Tower, BGC.
Practical Guidance on Securities Offerings (including High Yield and Initial ...Winston & Strawn LLP
The third installment of The Real Deal, “Practical Guidance on Securities and Initial Public Offerings in a Changing Environment,” was held on March 18, 2014. The Real Deal is a webinar series addressing current trends, challenges, and legal topics pertinent to M&A and securities professionals.
Winston & Strawn partners Jim Junewicz, Cabell Morris, and Karen Weber participated in an interactive webinar focused on what you need to know about the latest developments in securities offerings, including high yield offerings and IPOs.
Get government funding to prepare for IPO. Distinct roadmap that allows company to have a clear plan, including availability of funds, compliance to laws and Board of Advisors and Directors necessary for IPO listing.
It may not be the sexiest topic related to IPO, but it's important not to neglect your equity compensation when you're thinking of going public. The last thing on the list can be the first thing that gets you pinched. Originally presented at Synergy 2014, this deck was developed by experts from four firms (Radford, PwC, Cooley LLP and Solium), and is loaded with indispensable information. Don't go public without it!
As the exclusive research partner by Econique, Aranca made a presentation on “Global M&A in Changing Times.” Amith Karan, Director, Business Development & Strategy, Aranca, talked about how the M&A activity progressed during 2003-07 before the liquidity-fueled buying frenzy took over, and what contributed to sudden drop in the deals in 2008, and how the future is likely to pan out. “Taking stock in January 2010 about how the M&A activity made modest recovery in 2009 and what lies ahead, was the best way to start,” said Karan.
Insiders Guide On How To Raise Venture CapitalBob Dahlberg
This presentation is based on my six years as an entrepreneur during which I raised over $30M in venture capital, and six years as a VC writing checks to entrepreneurs. This guide describes a process on how to successfully raise money from any investor. It goes way beyond elevator and first pitch advice. Good luck!
Avnet, Inc. 2010 Analyst Day & 50th Anniversary Celebration: Dec 15, 2010
Presenters included: Roy Vallee, chairman and chief executive officer; Rick Hamada, president and chief operating officer; Ray Sadowski, senior vice president and chief financial officer; Harley Feldberg, president, Electronics Marketing; and Phil Gallagher, president, Technology Solutions.
Following the analyst day event, Avnet commemorated its 50th anniversary on the New York Stock Exchange by ringing the closing bell.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
1. Rebuilding the IPO On-Ramp
Putting Emerging Companies, Investors and the Job Market
Back on the Road to Growth
October 20, 2011
Confidential 1
2. Agenda
IPO Task Force Members
IPOs In Decline Last 15 Years
IPOs Support Innovation & Create Jobs
Structural & Regulatory Elements Impacting IPOs
Four Simple Steps to Tilt Balance Back
Confidential 2
3. IPO Task Force Members
Venture Capitalists Securities Attorneys
Kate Mitchell, Scale Venture Partners, Joel Trotter, Latham & Watkins
Task Force Chairman
Steve Bochner, Wilson, Sonsini, Goodrich
Mark Gorenberg, Hummer Winblad & Rosati
Partners
Academicians/Accountants
Tom Crotty, Battery Ventures
Bill Sahlman, Harvard School of Business
Public Investors
Carol Stacey, S.E.C. Institute
Jeff Cardon & Karey Barker, Wasatch
Chuck Robel, private investor & retired
Advisors
head of PWC Tech Practice
Henry Ellenbogen, T. Rowe Price
Investment Bankers
Entrepreneurs
Paul Deninger, Evercore
Magid Abraham Ph.D., CEO, Comscore
Carter Mack, JMP Securities
Josh James, former CEO, Omniture
Brent Gledhill & Brett Paschke, William
Desh Deshpande, former CEO and co- Blair
founder Cascade Communications &
Additional Support From:
Sycamore Networks and co-chair of
NACIE Investors, CEOs, NYSE, NASDAQ, NVCA
Confidential 3
5. Pre-1999 Avg Post-1999 Avg
900 547 IPOs / Year 192 IPOs / Year
800
Deal size >= $50M
700
Deal size < $50M
600
Number of 500
Initial Public
Offerings 400
300
200
100
0
Pre-1999, Majority of IPOs Were Done for Emerging Growth Companies
Sub $50M Deal-Sizes Were More Common than Larger Deals
Shift to Larger Deals Impacts IPO Ecosystem: Issuers, Small IBs, Institutional Buyers
Source: JMP Securities, Dealogic, Capital Markets Advisory Partners, Grant Thornton Confidential 5
6. Average Age Since Company Inception (in Years) at IPO
4.8 Years
Early
1980s
Median Age
at IPO
9.4 Years
Since
2007
Source: Thomson Reuters/National Venture Capital Association Confidential 6
7. Shift to M&A Resulting in Fewer U.S. Jobs
100%
90%
80%
70%
60%
50% % IPO
40% % M&A
30%
20%
10%
0%
Source: Thomson Reuters/National Venture Capital Association (Based on number of exits per year; M&A exits are for private company sales only.)
Confidential 7
9. Innovative Startups Become Market Leaders
Web
High Tech Retail / Services
Life Science Cleantech
Confidential 9
10. Innovative Companies Create Jobs and Grow Quickly
VC-Backed U.S. Revenues As a % of Total U.S. GDP Outpaces 2008-2010
($T) in 2008 - 2010 Total U.S. Sales Growth
21%
2000 2003 2006 2010 VC-Backed VC-Backed Total
Revenue Growth Growth
Former Startups Now Generate 21% of U.S. GDP &
Were Able To Grow Even Through The Recent Recession
Source: Venture Impact 2007, 2008, 2009 & 2010 by IHS Global Insight
Confidential 10
11. IPOs Finance Significant Job Creation
Post-IPO
Employment
Growth
Pre-IPO
Employment
Growth
92% of Job Growth in a Company Occurs Post-IPO
86% Post-IPO Job Growth Per August 2011 Survey of 2006+ IPOs
Source: Venture Impact 2007, 2008, 2009 & 2010 by IHS Global Insight; IPO Task Force August 2011 CEO Survey
Confidential 11
13. Challenges for Emerging Growth Company IPOs
Increased Regulation Makes IPO More Costly
Supply Down
Regulations Favor High-Volume, Low-Cost Trades
Channel Evolution
Shift In Economics From Investing to Trading
Weak Link To IPO Shares Allocated to Traders vs. Investors
Demand Decrease in Information Available Pre- & Post-IPO
Confidential 13
14. Supply: Post-IPO CEO Survey
Costs of Going and Staying Public Are High
Average Cost $2.5M to Go Public Annual Cost $1.5M to Stay Public
Costs Including SOX, Legal, Accounting
Source: IPO Task Force August 2011 CEO survey of incremental IPO costs from 35 CEOs of companies that went public since 2006;
Confidential 14
15. Channel Focus:
Trading Drives Revenue For Largest Investment Banks
Typical Large Bank Typical Boutique Bank
Large Bank Client Base Dominated by Traders vs. Investors
High Frequency Trading Up From <25% to 75% of Volume Over Last 5 Years
Research Focused on Large-Cap Stocks That Drive Revenue
Source: JMP Securities
Confidential 15
16. Demand Exists:
Emerging Company IPOs Deliver Returns To Investors
Myth: Small-Cap IPOs Lag in Performance
Truth: Small-Cap Performance Equal or Exceed Large-Cap IPOs
Post-IPO Market Cap 1 Day 1 Month 3 Months 6 Months 1 Year
$200-$500 Average 27.5% 34.8% 45.1% 43.9% 33.5%
$1B or more Average 35.9% 39.7% 37.7% 32.8% 28.5%
Investor Interviews Showed:
Strong Performance & Demand for IPOs
Challenge to Get Allocation of Shares
Decline in Availability of Research for IPO Companies
Source: JMP Securities, Dealogic
Note: Includes all IPOs from 1/1/2001 9/30/2011
Confidential 16
18. Four Draft Recommendations to Stimulate IPOs
Increase Supply
Companies
Improve Availability of Information for Investors
Improve Channel
Educate Issuers on How to Work With Banks Effectively
Incent Demand One-Time IPO Tax Incentive to Buy & Hold IPO Shares
Confidential 18
19. Create a New Category of Issuer: Emerging Growth
Company
Increase Supply Measurement begins at IPO
Ends with 10-K for the earliest year in which:
Annual Gross Revenue Exceeds $1 Billion
Company Becomes Well-Known Seasoned Issuer
Improve Channel Fifth Anniversary of IPO Effective Date
that provides scaled regulation (details next slide)
Builds on Existing Scaled Disclosure Rules for
Smaller Reporting Companies
Incent Demand
Status is Temporary & Transitional
Impacts 14% of Companies & 3% of Total Market
Capitalization Today
Goal: Reduced Costs For IPO Candidates While
Maintaining Investor Protection
Confidential 19
20. The Solution:
Two years of audited financial statements at IPO instead of
three
Increase Supply
Financial statements & selected financial data
accumulate until full presentation at Year 3
Scaled MD&A and executive comp disclosure
Exemption from:
Improve Channel Auditor attestation of ICFR SOX 404(b)
Say-on-pay, say-on-frequency and say-on-parachute
votes
Conflict minerals disclosure requirements
Pay-for-performance disclosure requirements
Incent Demand
CEO pay ratio requirements
Modifications and Extended Adoption of New FASB
Standards & PCAOB Rules
Transition
Confidential 20
21. The Solution: Improve Investor Communications
Improve Availability and Flow of Information to
Increase Supply
Investors for IPO
Modernize Securities Act Framework
Many restrictions are vestiges of a paper-based
world
Improve Channel
Release No. 33-
Opportune time to build on new approaches
introduced in 2005
Incent Demand
Goal: permit IPO candidates to communicate with
investors while maintaining investor protection
Confidential 21
22. The Solution: Improved Investor Communications
Improve Availability and Flow of Information to Investors
Greater Role for Research During Capital Formation Process
Increase Supply Maintain principles & codes of conduct including separation of
banking and research
Prominent disclosure regarding underwriter relationship
Modifications to Banking Research
Expand existing research safe harbors
Improve Channel Permit broker-dealers to initiate coverage without being
Eliminate unnecessary quiet periods
Eliminate unnecessary restrictions on analyst communication
Modifications to Company Disclosures
Incent Demand
Permit confidential initial filings & review for U.S. issuers
Expand permissible pre-filing communications
Permit broader pre-filing investor communications
Confidential 22
23. The Solution: Educate Issuers On Effective Use of
Banking Channel to Build New Investor Base
Educate Issuers About the New Capital Markets
Increase Supply Environment
Industry Participants, Not Policy Makers, Are
Responsible For Education
Help Emerging Growth Companies Become Better
Consumers of Investment Banking Services
Improve Channel Improved Education and Increased Involvement for
Management and Board
Choice of Balanced Investment Banking
Syndicate
Incent Demand
Improve Practice of Investor Communications
Goal: To Reconnect Buyers and Sellers of Small Cap
Stocks More Efficiently
Confidential 23
24. The Solution: Demand Side Incentives
Increase Supply
Incent Buyers To Participate In IPOs
Improve Channel
Lower the Capital Gains Rate for Buyers of Newly
Issued Stock if They Hold It for Two Years
Goal: To Incentivize Investors to Participate in
Incent Demand Emerging Growth IPOs
Confidential 24
26. 3% of Total Market Capitalization
Sources: Dealogic, Capital IQ, World Federation of Exchanges
Confidential 26
27. The Regulatory Cascade
Accounting & Compliance From Policy Makers &
1996 - Today
Industry
1996 Advent of Electronic Trading
1999 Gramm-Leach-Bliley Overturns Separation Of Commercial &
Investment Banking
2001 Decimalization Introduced For all Exchange Traded Shares
2002 Sarbanes-Oxley Act
2002 Today Additional Accounting & Compliance from Policy Makers & Industry
2003 Global Analyst Settlement Separates Research & Banking
2009 - Today Dodd-Frank Act
Confidential 27
28. CEO Survey: IPOs Fuel Growth
But Are Increasingly Difficult
Confidential 28
29. Pre-IPO CEOs Target IPO To Finance Growth
Motivation for Pre-IPO Companies
Source: IPO Task Force August 2011 CEO Survey
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30. Managing IPO Costs and Compliance Was Challenging
Source: IPO Task Force August 2011 CEO Survey
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31. Public Company CEOs:
IPOs Are Important But Increasingly Difficult
Agree Neutral Disagree
Strong & Accessible IPO Market Is Important
100% 0% 0%
to U.S. Economy & Global Competitiveness
U.S. IPO Market Is Accessible for Small
23% 11% 66%
Companies
It Is Not as Attractive an Option to Go Public
86% 3% 12%
Today as It Was in 1995
Going Public Was a Relatively Painless
17% 14% 69%
Experience
Going Public Has Been a Positive Event in My
83% 14% 3%
Company's History
Value of IPO: 86% Growth In Employees
Source: IPO Task Force August 2011 CEO Survey
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32. Rebuilding the IPO On-Ramp
Putting Emerging Companies, Investor and the Job Market
Back on the Road to Growth
October 20, 2011
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