Uploaded August 2024 | Updated September 2026, 1 week ago
Session Description: Moving from one phase of the life cycle to the next one can be a rite of passage, filled with hope and challenges. In this session, I look at the transitions as start-ups seek out venture capital, as young companies go public, as public companies try to raise additional capital and as middle-aged companies try to shrink and divest as they face decline.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch4.pdf
Exercise:
a. If any of your companies are private, find out whether it has accessed venture capital and if so, on what terms.
b. If any of your five companies are public, examine when the company went public and what its operating metrics (revenue growth, operating margins) looked like at the time of its IPO.
c. Have any of your companies, since going public, have raised more capital from external providers? If yes, did they raise additional equity or borrow more money?
d. Have any of your firms been targeted by private equity investors or activists? If yes, when and why?
Session Description: Moving from one phase of the life cycle to the next one can be a rite of passage, filled with hope and challenges. In this session, I look at the transitions as start-ups seek out venture capital, as young companies go public, as public companies try to raise additional capital and as middle-aged companies try to shrink and divest as they face decline.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch4.pdf
Exercise:
a. If any of your companies are private, find out whether it has accessed venture capital and if so, on what terms.
b. If any of your five companies are public, examine when the company went public and what its operating metrics (revenue growth, operating margins) looked like at the time of its IPO.
c. Have any of your companies, since going public, have raised more capital from external providers? If yes, did they raise additional equity or borrow more money?
d. Have any of your firms been targeted by private equity investors or activists? If yes, when and why?
