Trx Case

Better Essays
Topics: Stock market
1. How does the strategic repositioning of the company and the use of the IPO as an exit for minority shareholders affect the attractiveness of the IPO? The strategic repositioning of the company was to gradually shift away and exist from customer care which TRX generated more than 50% in 2000, and Davis’s long term strategy was to focus on the higher margin sectors, such as data transaction and integrations. By shifting away from customer care, of course would reduce operational cost and increase bottom line for the company but I think it would affect the attractiveness of the IPO in negative way. If I was an investor I would be in agreement with TRX only if they were reducing the customer care due to the high operating cost, but I mean reducing, not totally exist. In the service based company, interacting with end consumers is critical even know it has lower margin but the company should be able to profit from it, if it continues to operate in the future which I believe would create higher customer satisfaction and strong long term relationship with end-consumers. Davis decided to use the strategy to make the financial data looking good or positioning the company for the IPO which he knows that he was going to do in the future because the company need capital to support the firm’s growth, however to exist a sector was not good way to start with the risk that they might have lower customer satisfaction, as the company went IPO, any negative issues would tank the company’s shares if they were not in good relation with end consumers. Davis had chance to improve the attractiveness of the IPO, he had two options; first one was go ahead with the IPO at the lower price of $9 per share, then he had to deal with Hogg Robinson whose intention was to exit TRX, and Sabre whose was in its best interest to sever the relationship with TRX. Their lack of agreement would eventually block the IPO, in order to prove the attractiveness of the IPO; Davis has to convince those

You May Also Find These Documents Helpful

  • Good Essays

    Case TRX - IPO

    • 1383 Words
    • 6 Pages

    Financial Engineering Case Study Written Report NIKE INC., COST OF CAPITAL CASE REPORT Submitted to: Mr. Mieczyslaw Grudzinski Report date: 27 February 2014 BBA Finance & Accounting Semester 6, Academic year 2013-2014 Group Member: Tra My Nguyen 24458 Anna Kulishova 24444 Kaihao Zhang 25545 Zakariae Mokhliss 27727 NIKE INC., COST OF CAPITAL CASE REPORT INTRODUCTION Our group was assigned to produce a report on the Nike Inc.: Cost…

    • 1383 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Trx, Ipo

    • 266 Words
    • 2 Pages

    TRX, INC.: Initial Public Offering INTRODUCTION OF SOME SORT IPOs are not sure things; therefore, when considering going public, one of the most important things to look at is the company’s future growth potential. Investors need the comfort of good future returns before they buy stock. The potential for growth at TRX exists, especially in moving away from customer-care, but the continuous reporting of negative net income poses a problem. Potential buyers will be wary to invest in a company that…

    • 266 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Trx Docs

    • 350 Words
    • 2 Pages

    3. How favorable is the market climate for the TRX IPO? 4. How does the strategic repositioning of the company and the use of the IPO as an exit for minority shareholders affect the attractiveness of the IPO? The strategic repositioning of TRX in respect to transitioning away from customer care would most likely affect the attractiveness of the IPO in a negative way. TRX was concerned with the price and sustainability of the company in the IPO territory to begin with and already proposing prospect…

    • 350 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    TRX is known as a “behind the scenes” travel-processing service company. The company focused on managing travel and data processing activities for its clients so they could focus mainly on their core businesses. As it became a world-leading travel technology and data services provider, it offers services and utilities for online booking, reservation processing, data intelligence, and process automation. TRX generated revenue primarily from three service offerings: transaction processing, data…

    • 890 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Case Study

    • 668 Words
    • 3 Pages

    recapitalize the ownership structure of TRX thorough Initial Public Offering. The analysis is examined from two scenarios. One is that TRX keep on IPO at lower price of $9 per share; another is that it postpones the IPO in 2006. I would project the IPO price of 2005 and 2006, respectively based on the management plan. According to the TRX’s balance sheet and financial data, TRX was a very young technology-integration company which founded in 1999. By 2004, TRX generated $113.4m in total revenues and…

    • 668 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Case

    • 9606 Words
    • 25 Pages

    HYPERLINK l _Toc401352836 General theory about the auditor and auditor independence PAGEREF _Toc401352836 h 4 HYPERLINK l _Toc401352837 1.1. General theory about independent external auditor PAGEREF _Toc401352837 h 4 HYPERLINK l _Toc401352838 1.1.1. Definition of independent external auditor PAGEREF _Toc401352838 h 4 HYPERLINK l _Toc401352839 1.1.2. The work of independent external auditor PAGEREF _Toc401352839 h 5 HYPERLINK l _Toc401352840 1.1.3. The role of independent external auditor…

    • 9606 Words
    • 25 Pages
    Powerful Essays
  • Good Essays

    The Case

    • 1080 Words
    • 5 Pages

    Facts: The Negro plaintiffs in these cases were denied admission schools attended by the white children under the laws requiring or permitting segregation according to race. All the court adhered to the “separate but equal” doctrine and held that the plaintiffs were not admitted to the white schools (except for the plaintiff in the Delaware case). In the instant cases, the plaintiffs contend that segregated public schools are not “equal” and they are deprived of the equal protection of the laws.…

    • 1080 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Cases

    • 1328 Words
    • 6 Pages

    Pepsi Cola Products Philippines, Inc. (petitioner) v. Honorable Secretary of Labor (respondents) 1. Facts: a. June 1990: The Pepsi-Cola Employees Organization-UOEF (Union) filed a petition for certification election with the Med-Arbiter seeking to be the exclusive bargaining agent of supervisors of Pepsi-Cola Philippines, Inc. (PEPSI). i. Med-Arbiter granted this stating that PCEU-UOEF was an affiliate of Union de Obreros Estivadores de Filipinas (or the Federation) with two (2) rank and file…

    • 1328 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    CASE

    • 614 Words
    • 3 Pages

    Case #4 Fighting Grime (Clorox Company) This is a fun case in that it involves branded products that students will recognize yet probably do not associate with Clorox. A good way to introduce the case could be to bring in product samples or show the brand names of their many products and ask students what they have in common? The case is short and vivid and can be assigned ahead or simply read in class. It is an easy case to grasp quickly yet provides some very clear examples of strategic…

    • 614 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Case

    • 1362 Words
    • 6 Pages

    Case Name: South East Asian Economic Crisis An economic crisis, which erupted in Thailand in mid-1997 and which soon spread to neighbouring countries—Malaysia, Indonesia, Philippines and South Korea— came to be popularly referred to as South-East Asian economic crisis (although South Korea is in East Asia and only the other countries are in South East Asia). A currency Crisis shows up when there is a speculative attack on the exchange rate, resulting in a devaluation of a pegged currency or sharp…

    • 1362 Words
    • 6 Pages
    Better Essays