Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
4 Cards in this Set
- Front
- Back
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” |
|
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 |
|
Transactional Issues |
• Size of Offering • Lock-ups –Who and How Long • Use of Proceeds • Legal • Misc |
|
Arms length principle - can be counted on |
1. Comparable uncontrolled price 2. Resale 3. Cost plus |