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Case
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Reference no. 9-201-037
Subject category: Finance, Accounting and Control
Authors: E Scott Mayfield (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2000
Version: 4 January 2016
Revision date: 10-Feb-2016
Length: 11 pages
Data source: Field research
Topics: Business models; Cash flow; Contracts; Financial planning; Financial strategy; Forecasting; Internet; IPO
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Abstract

The CEO of a successful Internet start-up must decide whether to delay the company's initial public offering following a significant decline in the NASDAQ market during the spring of 2000. The company's CFO is asked to reevaluate the company's projected cash flow needs in light of the new requirement that in order to go public, Internet companies must show positive cash flows within a 12-month horizon. While examining ways to extend the company's working capital, the CFO considers various changes to the company's existing business model, including changes in the company's contractual relationships with both its suppliers and its customers.
Location:
California
Industries:
e-Commerce; Internet services; Videos & dvds; Web services
Size:
USD5 million revenues, 270 employees
Other setting(s):
2000
Teaching note
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Reference no. 5-202-058
Subject category: Finance, Accounting and Control
Authors: E Scott Mayfield (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2001
Version: 30 October 2001
Length: 17 pages
View full details
Case
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Reference no. 9-208-S09
Spanish language
Subject category: Finance, Accounting and Control
Authors: E Scott Mayfield (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2007
Version: 17 October 2006
Revision date: 8-Apr-2019
Length: 11 pages
Data source: Field research
Topics: Business models; Cash flow; Contracts; Financial planning; Financial strategy; Forecasting; Internet; IPO
View full details

About

Abstract

The CEO of a successful Internet start-up must decide whether to delay the company's initial public offering following a significant decline in the NASDAQ market during the spring of 2000. The company's CFO is asked to reevaluate the company's projected cash flow needs in light of the new requirement that in order to go public, Internet companies must show positive cash flows within a 12-month horizon. While examining ways to extend the company's working capital, the CFO considers various changes to the company's existing business model, including changes in the company's contractual relationships with both its suppliers and its customers.

Settings

Location:
California
Industries:
e-Commerce; Internet services; Videos & dvds; Web services
Size:
USD5 million revenues, 270 employees
Other setting(s):
2000

Related

Teaching note
-
Reference no. 5-202-058
Subject category: Finance, Accounting and Control
Authors: E Scott Mayfield (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2001
Version: 30 October 2001
Length: 17 pages
View full details
Case
-
Reference no. 9-208-S09
Spanish language
Subject category: Finance, Accounting and Control
Authors: E Scott Mayfield (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2007
Version: 17 October 2006
Revision date: 8-Apr-2019
Length: 11 pages
Data source: Field research
Topics: Business models; Cash flow; Contracts; Financial planning; Financial strategy; Forecasting; Internet; IPO
View full details