What’s going on here? Airbnb finally filed for IPO (S-1 form link) on Nov 16, 2020, after 5 years of rumor. Its valuation is now ~ $18 bil, compared with the $31 bil valuation in 2017. Pricing terms are not yet set. Lead underwriters are Morgan Stanley and Goldman Sachs. Airbnb’s recent performance Gross Booking…
Category: Journal Report
Journal Report 22: How Vietnamese ecommerce is different
Written by the Co-founder of Lazada – Christopher Brinkeborn Beselin, the original article states the characteristics of the Vietnam market that new e-commerce players might want to acknowledge. There appear to be some recurring themes that would continue to make the Vietnamese e-commerce landscape a special place to compete. Frugality Conservation seems to be what…
Journal Report 21: 3 ways COVID-19 impacted Microsoft’s latest earnings
Introduction Despite the coronavirus, Microsoft managed to make its overall revenue in the latest quarter jumped 15% YoY to $35 billion. But Microsoft wasn’t totally immune from financial troubles related to Covid-19. Here’s three ways the pandemic did impact the business. Bing and LinkedIn took a hit Microsoft experienced a “significant reduction” in ad spending, which affected…
Journal report 20: Today-I-learn about Accretion/Dilution Analysis (3)
Building a full-scale model Assumptions (purchase price, sources, and uses) IS CF BS adjustments Depreciation schedule Operating working capital schedule BS projection Debt schedule 3. CF CF from operations In the CF from operations, we conservatively lean toward consolidating both the acquirer’s and target’s line items with the understanding that operations are core to the…
Journal Report 19: Verizon’s $500 Million Acquisition of BlueJeans
Overview of the deal Acquirer: Verizon Business – a telecommunications giant (2nd place after AT&T) Veriozon is an American telecommunications conglomerate: providing consumer-focused wireless communications services through Verizon Consumer Group offering video & data services & networking & security solutions through Verizon Business Group Basic numbers No. of employees: 135,500 Market cap: $253.94 bil (Dec…
Journal Report 18: How to Kickstart and Scale a Marketplace Business (2) – Phase 1: 🐣 Crack the Chicken-and-Egg Problem
Once a marketplace business is operating, supply happily serves demand. However, when your marketplace is just getting started, you must convince one side of the marketplace to commit before the other side. This is known as the “chicken-and-egg problem”, and solving it is one of the biggest barriers to launching a marketplace business. Below are…
Journal Report 17: How to Kickstart and Scale a Marketplace Business (1)
How to Kickstart and Scale a Marketplace Business Phase 1: Crack the chicken-and-egg problem Part 1: Constrain the marketplace Part 2: Decide which side of the marketplace to concentrate on Part 3: Drive initial supply Part 4: Drive initial demand Phase 2: Scale your marketplace Part 1: Determine if you are supply or demand constrained…
Journal Report 16: Today-I-learn about Accretion/Dilution Analysis (2)
Major flaws with the accretion/dilution analysis Lack of full-scale financials Pro-forma balance sheet Interest expense: neglecting the debt that could be paid down each year Postmerger cost savings Depreciation & amortization: it would be more accurate to combine the total assets and rebuild a depreciation schedule from scratch Building a full-scale model Assumptions (purchase price,…
Journal Report 15: Today-I-learn about Accretion/Dilution Analysis
Major steps to conducting an M&A analysis Obtaining a purchase price Estimating sources and uses of funds Creating a pro-forma analysis Obtaining a purchase price The acquirer would need to consider a purchase based on the acquiree’s diluted shares, not basic ones. Uses of funds Purchase price Net debt Transaction fees Net debt (as opposed…
Journal Report 14: Today-I-learn about Asset acquisitions and Asset Divestitures
3 major methods of facilitating acquisitions Asset acquisitions: purchase only assets; the higher price paid for the assets is amortized and deductible for tax purposes. Stock acquisitions: purchase the whole entity, including all assets and liabilities; the higher price paid, specifically goodwill, is not amortized. 338(h)(10) elections: best of both worlds; available to buyers of…
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