Analysis shows the U.S. Groupon has been bankrupt in theory
According to foreign media reports, the U.S. financial channel CNBC commentator Herb Greenberg, senior equity (Herb Greenberg) Zhouyi Zhuan Wen said although the United States this week, buy site Groupon will launch its IPO (initial public offering) road show, but considering to the company’s shareholders’ equity is negative, so in theory, the site now actually in bankruptcy status.
Villanova University (Villanova University) Business School professor Anthony Catan ng Shoes Fashion Zone and Pennsylvania State University accounting professor Ed Katz (Ed Ketz) in their Bowen wrote: “Groupon is sixth of its S-1 file has been modified, and the most interesting is undoubtedly the first nine of the file data is worth noting that, as of September 30 this year, Groupon even negative equity – so in theory, the company has gone bankrupt! we still insist on the previous view that the next Groupon is very likely to hit the market failure. ”
Catan ng and Katz continues: “If Groupon can be successful IPO, the company’s shareholders ‘equity will become $ 464 million, the financial leverage ratio down to’ only ‘64% more satisfactory results, however, this can occur will depend on whether investors believe the real value of Groupon management in line with the corresponding expression, but we believe that investors will not agree with Groupon management about the company’s views on unlimited prospects. ”
For Groupon amended S-1 documents, investors will believe, Groupon management has fixed the original documents relating to the accounting terminology, self-contradictory statements. However, if the rough look of the revised document, there can still be seen Groupon many problems, including slowing revenue growth, will reduce operating expenses.
The Groupon management of “reduce operating expenses,” the very expression “mystery”: Groupon on the one hand that the North American market, operating expenses have to be reduced, but in another place stating that the file will be “the foreseeable future “increased operating expenses, increase the user base in order to achieve the purpose.
Catan ng said that although there are a number of technology start-ups in the market prior to the bankruptcy of the state into a theory (that is, debt over assets), but the purpose of listing these companies is to raise more funds to implement the established Shoes Luxury strategic corporate . The listing of Groupon is a slightly different purpose: The main is to allow existing investors to recover their investments.
Catan ng also believe that If you look at Groupon’s goodwill and other intangible assets, will be found to buy the site relevant to the situation worse. On the other hand, no evidence to show that, Groupon the “assets” really has a strong cash manufacturing capacity. All in all, Groupon write-down of assets is only a matter of time.
Early stage of development in the Amazon, some critics had thought that Amazon’s business model there is no way out. Perhaps we have today for Groupon criticism, as well as Amazon, just as when accused. In any case, Groupon is definitely not the Amazon.
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