SCORECARD
INITIAL PUBLIC OFFERING (IPO) SCORECARD
Name of Offering Names of Officers:
Description:
The following information is only intended for review by representatives of Broker Dealers and is not authorized for distribution to the public
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1. Company/Officers: ____Experience : # of yrs. in bus. a. More than 10 yrs. (5 pts)b. 8 – 10 years (4 pts)c. 6 – 7 years (3 pts)d. 4 – 5 years (2 pts)e. 1 – 3 years (1 pts) 2. Net Worth Consideration: ____(Prior to IPO) ( Neg. D/W ratio – 1 pt.) a. $5,000,000+ (5 pts)b. $2,500,000-$4,999,999 (4 pts)c. $1,000,000-$2,499,999 (3 pts)d. $500,000 – $999,999 (2 pts)e. $Negative net worth (1 pts) 3. Financial Track Record/Litig. ____(Hist. of operating losses/Def. Wk. Cap.) a. Oper. gains from incept. (5 pts)b. Oper. gains-most rec. yr (4 pts)c. Break-even – curr. yr. (3 pts)d. Oper. losses – curr. yrs (2 pts)e. Oper. losses from incep (1 pts) 4. Load Factors :($5-10MM offer.) ____ a. Less than 10% (5 pts)b. 10% – 11% (4 pts)c. 12% – 13% (3 prs)d. 14% – 19% (2 pts)e. 20% or more (1 pts
5. Liquidity (inc. guar.) ____
a. Fully liq. NYSE hist (5 pts)
b. App. NYSE/ASE (4 pts)
c. App. NASDAQ list (3 pts)
d. Listing app. pend. (2 pts)
e. Illiq. not to be trade (1 pts)
6. Self Dealing/Conflicts: ____
a. All “arms length” (5 pts)
b. Pay self – 1 area (4 pts)
c. Pay self – 2 areas (3 pts)
d. Pay self – 3 areas (2 pts)
e. Pay self in 4+areas(1 pts)
7. Dilution: _____
a. Less than 25% (5 pts)
b. 25% – 50% (4 pts)
c. 50% – 65% (3 pts)
d. 65% – 75% (2 pts)
e. More than 75% (1 pts)
8. Percentage of Supply/Demand:____
a. 90% (5 pts)
b. 95% (4 pts)
c. 100% (3 pts)
d. 110% (2 pts)
e. 120% (1 pts)
9. Assumptions:_____
a. Very conservative criteria & safeguards (5 pts)
b. Semi-conservative criteria with many safeguards (4 pts)
c. Semi-aggressive criteria with some safeguards (3 pts)
d. Aggressive criteria with few safeguards (2 pts)
e. Aggressive criteria with virtually no safe-guards (1 pts)
10. Risk Factors:
(% of Normal Risk)
a. 80% (5 pts)
b. 90% (4 pts)
c. 100% (3 pts)
d. 110% (2 pts)
e. 120% (1 pts)
TOTAL POINTS _____
Note: A minimum of 35 points (70%) is required for
due diligence consideration. Further, a score
of one (1) in any one category may cause the
offering (IPO) to be rejected.
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SCORECARDS
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