Few IPO’s received as much publicity as Groupon’s. Unfortunately for Groupon, their pre-IPO publicity was due not to optimistic forecasts, but to questionable accounting practices. The SEC reviews all pre-IPO filings, and in this case the review did not go … Continue reading
Audit Analytics reviewed the population of all auditor opinions filed with the Securities Exchange Commission as of July 6, 2012, to determine the number of going concerns (opinions qualified by an uncertainty regarding the going concern assumption). As shown below, … Continue reading
Self-identified peer groups, often disclosed in the proxy statements of SEC registrants, have proven to be a valuable tool for benchmarking executive compensation. Traditionally, peer groups have been formed by selecting a set of 14-24 companies on the basis of … Continue reading
Everybody knows that there’s no such thing as a free lunch. Raising money on the market costs money; but how much? As usual, the answer is: it depends.
According to Fusion-io’s (FIO) S-1 prospectus, they estimated that it would cost them $1.2M to raise $120M for their IPO. Similarly, HomeAway (AWAY) estimated that their cost for raising $140.7M was $3.5M. Simple math gives us a figure of about 1-2% for estimated costs, as a percentage of expected amount raised — and that only includes the direct costs. Continue reading