Trx: Hbr Case Study

Thank you for allowing us the opportunity to work with TRX and the request for additional information regarding a projected Case Study on your company’s initial public offering (IPO). After internal analysis and check of all resources we have developed the following observations:

1. Benchmark standards for company’s considering going public.

2. TRX needs to make significant changes in the structure of the company before considering an IPO.

3.

4. The company’s strategic repositioning is fueled by future growth and the recapitalization of current ownership structure.

1.) The following below are attributes that make a company a good candidate for an Initial Public Offering (IPO):

• Solid Management Team

• Product the public can easily relate and access

• Simple Capital Structure

• Strong Reputation

• Growth in business and demand

• Minimal conflicts of interest

• Unique business model

• Strong institutional investor support

2.) How does TRX measure up to the above benchmarks for an IPO. The following outlines TRX comparable dimensions:

• Solid Management Team: Trip Davis seems to have an understanding of the travel business with a wealth of experience obtained from years of experience in the industry. Davis is extremely focused on the success and growth of TRX.

• A product the public can easily relate to: The products and services that TRX provide are not easily relatable to the general public.

• Simple Capital Structure: TRX has 19,317 (dollars in millions) in convertible securities on the balance sheet. The convertibles pose an immediate threat of dilution. The greater the dilution, the greater the potential that the stock price per share will fall. The more the stock price falls, the greater the number of shares the company may have to issue in future conversions and the harder it might be for the company to obtain other financing.

• Strong Reputation: TRX appears to have a good reputation with other businesses. The company has...