...An Examination of LBJ Distribution Company Internal Controls Infrastructure Pre IPO ACCT 504: Financial Accounting Keller Graduate School of Management Professor Ganesh Pandit Date: February 9, 2014 Pre IPO Examination of LBJ Distribution Company Internal Controls Infrastructure Prepared for: President, LBJ Distribution Company Prepared By: Véron S.A. Lake Company: LLMCO Date: 9 February 2014 Table of Contents Introduction 3 Purpose 4 Legal Requirement of Internal Controls 5 IPO Readiness: Financial Internal Controls 5 IPO Readiness: Recommendations 6 Reliable Monthly Reports 6 Adequate Staffing of Financial Departments 6 Implementation of Audit Infrastructure 6 IPO Readiness: LBJ Internal Control Strengths 7 Pre-numbered Invoices 7 Recommendations: Indelible Ink Machine 7 IPO Readiness: LBJ Internal Control Weaknesses 7 Staffing: Accounting Department 7 Staffing: Human Resource Department 8 Recommendations: Handling Petty Cash 8 Recommendations: IT Department Physical Controls 9 Conclusion 9 Works Cited 10 Introduction A company going public today is different than what it was in the dot com era; this is because the IPO landscape has changed significantly in the last decade (KPMG, 2013). Recently experts has seen compression in the markets, decreasing or shifting mergers and acquisition activity, faltering businesses and more scrutiny on balance sheets and company cash as well as access to capital (KPMG, 2013; Morgan...
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...An Examination of LBJ Distribution Company Internal Controls Infrastructure Pre IPO ACCT 504: Financial Accounting Keller Graduate School of Management Professor Ganesh Pandit Date: February 9, 2014 Pre IPO Examination of LBJ Distribution Company Internal Controls Infrastructure Prepared for: President, LBJ Distribution Company Prepared By: Véron S.A. Lake Company: LLMCO Date: 9 February 2014 Table of Contents Introduction 3 Purpose 4 Legal Requirement of Internal Controls 5 IPO Readiness: Financial Internal Controls 5 IPO Readiness: Recommendations 6 Reliable Monthly Reports 6 Adequate Staffing of Financial Departments 6 Implementation of Audit Infrastructure 6 IPO Readiness: LBJ Internal Control Strengths 7 Pre-numbered Invoices 7 Recommendations: Indelible Ink Machine 7 IPO Readiness: LBJ Internal Control Weaknesses 7 Staffing: Accounting Department 7 Staffing: Human Resource Department 8 Recommendations: Handling Petty Cash 8 Recommendations: IT Department Physical Controls 9 Conclusion 9 Works Cited 10 Introduction A company going public today is different than what it was in the dot com era; this is because the IPO landscape has changed significantly in the last decade (KPMG, 2013). Recently experts has seen compression in the markets, decreasing or shifting mergers and acquisition activity, faltering businesses and more scrutiny on balance sheets and company cash as well as access to capital (KPMG, 2013; Morgan...
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...Review of the Legal Environment of Business This paper is written as an informational document for business executives on the economic and legal factors that affect company transitions from private to public ownership. Mason (2011) stated there are three top reasons that business entities transition from privately owned to publically owned are as follows: (1) Boatloads of cash. (2) Brand awareness. (3) Playing with the big dogs. When a company goes public, it is really trading for a large amount of cash for profitability and growth. The initial public offer (IPO) is the instrument that represents stock or the representation of what a person or entity puts up as cash for the funding of the company’s desire to make more money. The issuance of an IPO changes the company’s culture that now it must focus on long-term results that previously the focus was on short-term returns. The cost of IPO issuance is very expensive. The cost include the satisfaction of the accounting and legal costs associated with being publicly-traded. When a company decides to go public, it gets an enormous amount of press, consumer awareness and exposure for new products relating to brand awareness. Brand awareness is a primary factor for the success of the decision to becoming publically owned. Business Week lists just 33,000 public companies around the world (Mason, 2011). After an IPO, a company is free to use that cash however it sees fit, and it never has to repay a penny. However, the costs is so high...
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...FROM THE SINGAPORE IPO MARKET VOON PEIJUN (Bachelor of Business Administration (Hons), NUS) A THESIS SUBMITTED FOR THE DEGREE OF MASTERS OF SCIENCE (BUSINESS) DEPART DEPARTMENT OF FINANCE AND ACCOUNTING NATIONAL UNIVERSITY OF SINGAPORE 2009 ACKNOWLEDGEMENT I would like to express my warmest gratitude to Professor Michael Shih for his patient guidance and encouragement all this while. A very big thank you, Sir. I would also like to take this opportunity to thank my family for their love and concern all these years. Thank you Dad, Mum and Brother. Without their support, I would not have come so far. Thank you! Voon Peijun 2009 Page i ABSTRACT The study explores the role of issue managers in the initial public offering (IPO) process. Empirical research shows that IPOs are associated with two significant market anomalies: short-run underpricing puzzle and long-run underperformance phenomenon. This paper examines the reputational influence of issue managers on the two anomalies. Employing the newly developed ‘twelve-month rolling’ reputation ranking approach, our study is the first to furnish a comprehensive ranking of all the issue managers with a substantial presence in Singapore. Based on a sample of 384 IPOs listed on the Singapore Exchange between January 1, 1997 and August 22, 2008, we find evidence of prevalent short-run underpricing and long-run underperformance in the domestic market. Our findings indicate that the IPOs backed by higher reputation...
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...06_597 VER 03/07 14000 2006 IPO Report wilmerhale.com WILMER CUTLER PICKERING HALE AND DORR LLP Wilmer Cutler Pickering Hale and Dorr llp is a Delaware limited liability partnership. Our United Kingdom offices are operated under a separate Delaware limited liability partnership of solicitors and registered foreign lawyers regulated by the Law Society of England and Wales. In Beijing, we are registered to operate as a Foreign Law Firm Representative Office. WilmerHale principal law offices: 60 State Street, Boston, Massachusetts 02109, +1 617 526 6000; 1875 Pennsylvania Avenue, NW, Washington, DC 20006, +1 202 663 6000. This material is for general informational purposes only and does not represent our legal advice as to any particular set of facts, nor does it represent any undertaking to keep recipients advised of all relevant legal developments. ® SM Attorney Advertising ® Table of Contents 2 US IPO Market Review and Outlook 6 Law Firm and Underwriter Rankings 8 Regional IPO Market Review and Outlook – California – Mid-Atlantic – New England – Tri-State 10 Securities Offering Reforms Are a Year Older – Are IPO Issuers a Year Wiser? 12 Selected WilmerHale Public Offerings 14 SEC Expands Required Compensation Disclosures 18 PIPEs and Rule 144A Market Review and Outlook 21 SOX 404 – The Saga Continues 22 Is the AIM to Reincorporate? 24 Best Practices:...
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...Royal University of Law and Economics Case Study 26 “JetBlue Airways IPO Valuation” Lecturer: Kou Lim Hong Prepared By: 1. Ms. Khoun Davy 2. Ms. Khoun Dalin 3. Ms. Chiem Sothana 4. Mr. Soksithika 5. Mr. Oag Sothearith 6. Mr. Mov Vandara MFM, Group 2 team 6 2011-2012 Outline of The Presentation I. II. Introduction of Case Study Main Problem III. Literature Review IV. Case analysis V. Conclusion Outline of The Presentation I. II. Introduction of Case Study Main Problem III. Literature Review IV. Case analysis V. Conclusion Introduction of Case Study JetBlue Airway Background JetBlue airways are a low cost airline established in July 1999 by David Neeleman. David Neeleman was experienced in the operations of airline and start up airlines. The airline was to provide new levels of service in the airline travel industry, concentrating on customer service and low fares. Introduction of Case Study JetBlue Airway Background David Neeleman plan was to commit to innovation in people, policies and technology to keep the companies planes full and thus the company profitable. To ensure this goal and the company’s future David Neeleman assembled and impressive management team and group of investors. JetBlue’s COO was to be David Barger ex-vice president of Continental Airlines. John Owen who was executive vice-president and treasurer of Southwest Airlines agreed to become JetBlue’s CFO. Introduction of Case Study JetBlue Airway Background David...
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...supervision of Professor Colin Blaydon as a basis for class discussion rather than to illustrate either effective or ineffective management. Copyright © 2003 Trustees of Dartmouth College. All rights reserved. To order additional copies, please call (603) 646-0522. No part of this document may be reproduced, stored in any retrieval system, or transmitted in any form or by any means without the express written consent of the Tuck School of Business at Dartmouth College. N As shown in Exhibits 1 and 2, mergers and acquisitions are much more common in recent years than IPOs. Entrepreneurs that dream of an IPO and insist upon it when seeking an exit are vastly reducing their opportunities for successfully monetizing their shares. O The most popular exit strategies are: • A merger with another company, either public or private • An acquisition by another company, either public or private • An Initial Public Offering (“IPO”) whereby a private company offers its shares to the general public through a registration process with the Securities and Exchange Commission (“SEC”) • A private placement, whereby the company sells its securities to accredited or institutional investors. T C O In the investment world, an “exit” is the process by which founders, management and investors in a startup or growth company successfully find public or corporate buyers for some or...
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...Part B: Short Case Memo TO: Alfonso & Leo, SEL FROM: Me, CGA DATE: March 25, 2015 RE: Recommendations for Accounting Software and IPO Steps As per previous discussions, as SEL continues to grow, we need to look into how it can gain a competitive edge in its market by gaining control of the financial activities of the company. With this growth, it needs to consider how to raise additional capital and how to manage the increase in employees and accounting transactions. Over the last 4 years, SEL has grown its business by 25% in total revenue. There are currently enterprise risks and issues that SEL faces due to the lack of planning, organizing, leading and controlling of its financial activities. As SEL is about to obtain a significant contract over a five-year period, it needs to gain control and put processes to operate effectively and efficiently. There are currently some weaknesses in SEL’s financial accounting and reporting system. The part time accountant with only basic accounting experience doesn’t allow SEL to have proper financial analysis or forecasting and it could cause potential accounting gaps, such as not knowing how to properly account for foreign exchange risk. With the part time accountant doing all the accounting tasks, there is no segregation of duties, proper review or approval processes in place. By not analyzing the finances or preparing forecasts, it is not allowing SEL to see where it stands financially and it doesn’t allow for...
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...2002 TO CORPORATIONS In Partial Fulfillment of the Requirements in Accy 99 Synthesis Submitted by Jess Charls P. Mojello Submitted to: Ms. Dynnith F. Suaberon, CPA, MBM Instructor May 2015 TABLE OF CONTENTS CHAPTER I Introduction 1 Statement of the Problem 2 Scope and Delimitation of the Study 3 Significance of the Study 3 CHAPTER II REVIEW OF RELATED LITERATURE 4 Background 4 A. The Securities Act of 1933 4 B. The Securities Exchange Act of 1934 4 C. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 5 D. Sarbanes-Oxley Act of 2002 5 Title I – Reopening American Capital Markets to Emerging Growth Companies 6 Title II – Access to Capital for Job Creators 13 CHAPTER III METHODOLOGY 16 Research Design 17 Locale of the Study 17 Data Gathering Procedure 18 Statistical Methods and Analysis Used 18 CHAPTER IV PRESENTATION AND ANALYSIS OF DATA 19 CHAPTER V CONCLUSION AND RECOMMENDATION 29 REFERENCES 31 CHAPTER I Introduction Several studies have shown a substantial decrease in the number of IPOs and in start-up capital formation in years before the JOBS Act implementation in the global market. Authorities have also observed that for some time the inhospitable environment and overly burdensome regulatory requirements has naturally influenced capital-raising demand and entrepreneurship. The cost of Sarbanes-Oxley compliance; over-regulation brought...
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...[pic] IPO Valuation By: Ryan DeCoudres & Jose Alessandro de Vasconcelos March 24, 2009 TABLE OF CONTENTS INTRODUCTION 2 COMPANY AND INDUSTRY BACKGROUND 3 GOING PUBLIC 4 THE IPO PROCESS 5 JETBLUE VALUATION 10 RECOMMENDATION 12 WHAT HAPPENED 12 REFERENCES 15 INTRODUCTION Following the terrorist attacks of 9/11, the airline industry was in the doldrums. Many of the largest carriers in the nation had filed for bankruptcy protection and were asking the federal government for help so they could survive. Certainly few people at this time considered the airline industry to be an extremely profitable venture, but where others saw despair, David Neeleman, CEO and founder of JetBlue Airways, saw opportunity. In 2002, after 2 years of profitable operations and less than a year after the attacks that shook the industry to its core, JetBlue Airways had its Initial Public Offering (IPO) and went public. This case study outlines the IPO underwriting process and uses JetBlue as an example to describe the steps throughout the way. It also asks the analyst to come up with a valuation for this IPO, based on the financial and non-financial data presented. In the following pages, we will discuss the pros and cons of going public, the IPO process itself, and walk through the calculations that led us to our...
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...| 2013 | | FGI Consulting | [LJB Company] | This document is prepared for the President of LJB Company. Recommendations for IPO planning and Internal Control review to meet current status and carried over when the company is a publicly traded company. Controlled document 1A3872013 | In this document recommendations are presented for consideration for the current and future internal controls of the company and for the planning of its IPO. IPO It is important to understand that good governance demonstrated is a requirement under the Sarbanes-Oxley Act of 2002 for publicly traded companies through maintaining an adequate system of internal controls. The executives and Board of Directors are required to ensure that these controls are effective, consistent in their administration of and reliable in their objectives. The Sarbanes-Oxley Act is arranged into eleven 'titles'. As far as compliance is concerned, the most important sections within these eleven titles are usually considered to be 302, 401, 404, 409, 802 and 906 (Sarbanes-Oxley Act 2002). Certification, which comes at a cost, can also be acquired for compliance which gives great credibility to the company for prospective capital resources such as investors and banking institutions with which the company plans to do business with such as borrowing operating capital – long term notes. Determinations concerning how many shares are initially offered for sale, and what the value and cost per will be, will have...
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...Get to Know the BAT Table of Contents Introduction Test Overview Sample Questions Scoring Introduction We are excited about your participation in the Bloomberg Assessment Test (BAT). The BAT is a global, standardized online exam that the Bloomberg Institute has developed in partnership with premier companies, university faculty, and business professionals around the world. The test is designed for undergraduates and recent graduates who are interested in an entry‐level job in the business world. The following information packet is intended to familiarize you with the content and structure of the BAT. Enclosed you will find information about the test’s goals, sections, and scoring. There is also a list of annotated sample questions for you to review. If you have any additional questions about the content of the test, please feel free to contact us at bat@bloomberginstitute.com. Table of Contents Introduction Test Overview Sample Questions Scoring Test Overview The BAT aids employers in identifying and screening students who wish to pursue a career in the business world. Test takers should have a general understanding of and familiarity with current events in business, finance, and economics; however, much of what is being assessed is a person’s aptitude and skills to be successful in business. 3 hours 10 sections 150 questions The following pages discuss the different sections of the BAT and the concepts you can expect to see. Test Overview Career Skills ...
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...environment affecting IPO decision” BRM Project – IKEA + IPO Abstract This research is aimed at developing a new model that should be able to determine for each privately owned company whether going public is a possibility for attracting new capital. Research upon IPOs resulted in variables of which a conceptual and hypothesized model were created. A meta-analysis and case study should determine the relevance and reliability of the model. Thereafter, a final model can be composed which can be applied to IKEA Group, our target company for the research, in order to obtain the final result; IKEA Group is qualified for an IPO, or not. Table of contents Introduction II 1. Rationale 1 2. Situational Analysis 2 2.1 Initial Public Offering 2 2.2 Advantages 3 2.3 Disadvantages 3 3. Theoretical Background 4 3.1 Initial Public Offering 4 3.2 Product market characteristics and performance 4 3.3 Industry characteristics 5 3.4 Initial underpricing 5 3.5 Hot and cold markets and IPO waves 6 3.6 Long-run performance 6 4. Conceptual Model 8 4.1 Hypotheses 9 4.1.1 Hypotheses Independent variables 9 4.1.2 Moderating Variables 9 5. Research design 11 5.1 Unit of analysis 11 5.2 Meta-analysis 11 5.2.1 The hypothesized model 11 5.2.2 The implementation 13 5.3 Case study 15 5.4 The implementation of the results 15 Bibliography 16 Appendices 20 * * Introduction Introduction The consideration of undertaking an IPO is one of the most...
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...1 Best practice recommendations for emerging markets IPOs Published by Deutsche Börse AG in collaboration with Deutsche Börse Listing Partners 2 Preamble Preamble The following recommendations and suggestions are designed to help issuers as well as participating banks and advisors to address the special characteristics of an emerging markets company’s initial public offering (IPO) and thus to contribute to a successful IPO. They do not constitute mandatory procedures for conducting an emerging markets IPO. The specific features of each issuer should always be taken into account. Therefore, the following recommendations should not be treated as a comprehensive list of the issues to be considered in emerging markets IPOs. For the purpose of these recommendations, emerging markets IPOs are IPOs of companies whose management, ownership structure and operations are predominantly located in an emerging markets country. Additional information Details on financing options and access to the capital market through Deutsche Börse can be found at www.xetra.com/listing_e. The Listing Center also offers an index of expert capital market specialists: Deutsche Börse Listing Partners. These independent service providers can also be searched by area of business and region: www.xetra.com > Listing > Listing Partners Your contact at Deutsche Börse Listing & Issuer Services Phone +49-(0) 69-2 11-1 88 88 E-mail issuerservices@deutsche-boerse.com Finance your future. Made in Germany ...
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...undergraduate degree. Contents: 1. Introduction 1 2.1 Background to the IPOs……….………...............................................................1 2.2 Problem Discussion………….……...…………………….………………….....4 2.3 Contribution of the study……………………………………….……...………..5 2. Literature Review 6 2.1 Lockup Agreements…………………………………………………………….6 2.2 The Stabilization process-price support………………………………………...7 2.3 A theoretical background to underpricing………………………...……………8 2.4 The adverse selection……………………………………………………...…....8 2.5 How can underwriters affect underpricing………………….……………..……9 2.6 The role of institutional investors……………………………………….……..11 2.7 Issuers’ holdings……………………………………………….………………11 2.8 Underwriters’ purchases…………………………………………………….…12 3. Development of Hypotheses 13 3.1 Information asymmetry & Underwriters’ holdings impact on IPO price………13 3.2 The issue of realizing profits……………………………………………………15 4. Methodology 16 4.1 Dataset and Measurement of Variables…………………………………………16 4.2 Empirical Models……………………………………………………………….17 5. Empirical Results 19 5.1 Trading in the Short Term………………………………………………………19 5.2 The information advantage issue………………………………………………..19 6. Conclusion 20 Reference 21-22 Appendix 23-38 Introduction: 1.1 IPOs background...
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