Posted - 2006.06.16 19:41:00 - [3
Edited by: Trevedian on 16/06/2006 19:59:02
Preliminary IPO Business Plan
For now, as the actual IPO is due to be in 1 month, what will follow is going to be a fairly rough business plan, the actual one will be much more detailed and precise. We have received a loan from the Enron Corpoartion which will soon be repaid in full.
Tech II Production will be the focus of the corporation. Depending on funds raised through the IPO, I will try to aim for tech II ship production, but modules will also do. The IPO itself will last between 2 and 3 weeks, depending on how quickly shares will sell, and will be done in three phases.
As of yet, I am not sure what kind of capital I will want to raise, but it will be between 30 and 100 billion ISK. This will be influenced by several factors, including RL availability, other responsibilities in-game I may have at the time (cashier, broker, etc.) and just how much ISK people in the Eve community are ready to entrust me with.
To prevent the eventuality of me giving up on Eve (not likely, to say the least) - I will invite the alts of community trusted people into the corporation, people such as Tamora, Liberace, Fo0b2 etc. These people will not only be invited to the corporation, but also given directorship rights, so that they can monitor corporation progress, assets, and the wallet, to make sure no money is leaking out. Every two weeks a report I will do will hopefully be accompanied by comments from these people. And I will do my best to make the reports as good, if not better, than those of O'Mara Shipyards, the first corporation to make the most readable and comprehensive reports in Eve.
Once the needed capital is raised, I will proceed to buy the most profitable BPOs I will see on auctions. BPOs will be judged by the following factors:
1) Is the BPO for sale at over the profit gained after 12 months of sale?
2) How hard is it to set up a successful cash flow system and startup production? For example, modules such as Cruise Missile Launcher II take relatively little effort to produce, while Command Ships such as Absolution require much more components.
3) What is the likelihood CCP will either boost or nerf said module or ship which will increase or decrease its demand, as well as the value of the BPO?
4) How likely is it that more BPOs of the same type will be seeded, increasing supply?
Expenditures of profits
Which means that 5% of the monthly profits will go to my wallet, accounting for management salary.
25% of the money will be re-invested into the corporation. So that for example, over the period of several months, enough money may be acquired to buy another T2 BPO, perhaps with the help of a loan from a bank such as the EIB or BMBE. Hence, increasing the corporation value over time, as well as the monthly return on investments, and hence the share value itself.
While the majority, 70% of the money will be issued as dividends. Taking once again the example above of a 2.5 billion monthly profit, this means that 0.7 x 2,500,000,000 = 1.75 Billion will be issued as monthly dividends. Dividing 25 million by 1,000 (the amount of shares) we get a a very high monthly ROI per share, which means 7% ROI, so that your investment will be recouped in 10 months, just over a year. This is without taking into account share value increase, and you will also still have your shares at the end of the 14 months, which should hopefully be valued at much more than what they were during the IPO.
In regards to a PE/ Ratio, this is an excellent opportunity.
Posted - 2006.06.16 23:06:00 - [9
As side effect from our subtle activities, we became specialized in recycling loot all over EVE's universe, discovering the arcanes of production. Ultimately turning into builders was therefore the logical and expected natural evolution predicted by all Darwinian models.
In our philosophical quest, we aim to finally complete the cycle of destruction->mutation->construction (also called transmutation in the Middle Age), and offer you the rare opportunity to be part of this challenging adventure in the reverse order of the mentioned sequence with a lasting satisfaction inversely proportional to your smart investment.
"Nothing is lost, nothing is created, all is transformed." -- Antoine-Laurent de Lavoisier (1743-1794)