This Case is about Finance
Publication Date: 09/28/2015
When competing Zillow Group, Inc., went public in July 2011, it was just a matter of time before Trulia, Inc.
(Trulia), followed suit. In late May 2012, he was contemplating when to go public, in the aftermath of Facebook’s unsatisfactory IPO in the month before, which had delayed the IPO market.
Trulia would qualify as an EGC, and thus, was eligible to avail itself of people and the decreased disclosure on-ramp provisions of the law. Aggarwal must decide what provisions of the new law to embrace with few precedents to go by.
The case contains a straightforward valuation exercise of Trulia’s preliminary budget for teachers wishing to cover this issue.
In addition, it covers two other contentious issues about IPOs: the high costs of going public and the disappearance of little IPOs in America as motivation for the JOBS Act, from 2001 to 2011. A short review is given for each issue and the controversy surrounding it to allow teachers flexibility in exposing students to these problems.
(This case was composed for Darden’s second year MBA elective focusing on funding arrangements) This case would be useful in graduate or undergraduate classes covering corporate finance, capital rising, or investment banking.
Learning Objective: 1.
Expose students to valuation methodology used in establishing stock price for an IPO.
IPO Valuation Model
Acquire an understanding of the JOBS Act impacts procedures and the related costs for comparatively small-scale companies going public.