5 Notable Disclosures in Groupon’s Financial Statements and What They Mean.

Since Groupon first submitted its S-1 filing in June, 2011, there has been a wave of negative sentiment around Groupon’s  upcoming IPO.  Many analysts believe that not only is Groupon not a good investment at the approximate $20 Billion + that its IPO’s initial share price will value it at, but  is in fact on the brink of insolvency.  They are also some that do not believe that, in the long run, Groupon’s business model is profitable . 

In an effort to determine whether Groupon is in fact  a raging buy or, as alternatively presented, on the verge of insolvency, I have undertaken an analysis of their latest S-1 , which was filed with the SEC on August 10, 2011.  The document, which is required by all companies who want to file an initial public offering, comprehensively reviews its operations, long term viability, business risks (which are numerous) and its financial condition.  Some of the more interesting discoveries, as they relate to the 6 months ending June 30, 2011, are presented below:

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Noteworthy: August20, 2010 - Mark Hurd "resignation", Startup Considerations and Traits of Happy Entrepreneurs

  • Quebeckers not overly interested in wealth creation:

Using 20 indicators, it (Quebec Employers Council) gave Quebec good marks for university graduation, taxation on business investment and spending on research and development. That was offset by the need to do more on the economic integration of immigrants, payroll taxes, labour laws and public debt, the council said in its first report card.

  • The real reason Mark Hurd was forced to resign:

Apparently Mark Hurd's "resignation" had less to do with a violation of HP's sexual harassment policy and more to do with Board's fear of bad publicity.  Although improprieties in his expense reports would have given them cause to fire him, they let him resign (along with his $40 million severance) to avoid a possibility of a wrongful termination lawsuit.

  • 10 Things to Consider before Starting your Start-Up

The article contemplates factors to consider including before launching a startup including competition, industry, funding and marketing.

Thriving on risk, patience and being competent at different jobs are all characteristics of an entrepreneur.