by Eggy jr August 10, 2006
Get the Spoksey mug.(FINANCE) an initial public offering of stock in a company by a private equity fund that already owns it.
ILLUSTRATION
Suppose we have a company, HCA, that currently a publicly traded corporation. Now, some people with a lot of money arrange to borrow even more money, buy ALL the stock in HCA, and then turn it into a private corporation. All of the shares of stock are withdrawn and the company no longer has to publish its financial data with the SEC.
In theory, the new ownership can totally restructure the management; invest in new assets; divest old assets; retrain staff; or otherwise refurbish HCA so it does its job better and more cheaply. After doing this, it sells the new HCA to the public for much more than it paid for it, and everyone comes out a winner.
In practice, PE fund raids HCA to the tune of $2.5 billion and saddles it with the gigantic finance costs of its own LBO. Investors think they're buying a set percentage of HCA when they buy shares, but they're really just extending the process of vacuuming cash from the pockets of investors.
ILLUSTRATION
Suppose we have a company, HCA, that currently a publicly traded corporation. Now, some people with a lot of money arrange to borrow even more money, buy ALL the stock in HCA, and then turn it into a private corporation. All of the shares of stock are withdrawn and the company no longer has to publish its financial data with the SEC.
In theory, the new ownership can totally restructure the management; invest in new assets; divest old assets; retrain staff; or otherwise refurbish HCA so it does its job better and more cheaply. After doing this, it sells the new HCA to the public for much more than it paid for it, and everyone comes out a winner.
In practice, PE fund raids HCA to the tune of $2.5 billion and saddles it with the gigantic finance costs of its own LBO. Investors think they're buying a set percentage of HCA when they buy shares, but they're really just extending the process of vacuuming cash from the pockets of investors.
MIKE: So I hear that KKR and Bain Capital are selling HCA back to the public. A new IPO, huh?
MARGARET: Avoid it. Ordinary IPO's by companies going public for the first time are doing much better.
MIKE: But that's crazy! It's a sponsored IPO! By KKR and Bain Capital! It's got to be good! They'll still own most of HCA afterward, so they'll do what it takes to make sure the price stays high.
MARGARET: No, they don't care what the share price does so long as they get your money out of you. In the meantime, they've looted the company in the most inefficient way possible: using an LBO financed with junk bonds.
MIKE: Ouch, I guess my head is glad I talked to you about it but my heart is a greasy stain in the pavement.
MARGARET: Avoid it. Ordinary IPO's by companies going public for the first time are doing much better.
MIKE: But that's crazy! It's a sponsored IPO! By KKR and Bain Capital! It's got to be good! They'll still own most of HCA afterward, so they'll do what it takes to make sure the price stays high.
MARGARET: No, they don't care what the share price does so long as they get your money out of you. In the meantime, they've looted the company in the most inefficient way possible: using an LBO financed with junk bonds.
MIKE: Ouch, I guess my head is glad I talked to you about it but my heart is a greasy stain in the pavement.
by Sorry, the good guys lost September 2, 2010
Get the sponsored IPO mug.A reference to any one of the following:
A person or thing that is a piece of shit, generic, cheap, low end, sub-standard, sorry, pitiful, cruddy, miserable, disadvantaged, negative, etc.
Adjectives: Spooshot (used most often), Spoo (used less often)
A person or thing that is a piece of shit, generic, cheap, low end, sub-standard, sorry, pitiful, cruddy, miserable, disadvantaged, negative, etc.
Adjectives: Spooshot (used most often), Spoo (used less often)
This word is usually exclaimed at the point of non-approval or disgust of someone or something.
"I can't believe that he went home because his wife called and told him to. He didn't even pay his bill. He's such a Spooshoter."
However, this word is quite often spoken slightly under one’s breath and directed toward someone in close proximity. This is usually done by saying the word to or about that someone else, but wanting someone even closer to hear the remark.
"I can't believe that he went home because his wife called and told him to. He didn't even pay his bill. He's such a Spooshoter."
However, this word is quite often spoken slightly under one’s breath and directed toward someone in close proximity. This is usually done by saying the word to or about that someone else, but wanting someone even closer to hear the remark.
by Brett (aka Lucky) March 16, 2007
Get the Spooshoter mug.A small bird usually grey or brown in colour, that craps everywhere and builds nest in sheds, usually only called this by South Australians.
by steven leske March 12, 2008
Get the spogies mug.Stupid Piece Of Sh*t Headphones. Used in anger or frustration at loss of stereo effect while listening to a song.
by Musikk June 19, 2009
Get the SPOSH mug.Our first in command god. Spog is a purple and orange dragon who has been crowned as the god of our luxurious and grassy lands. Spog is often seen alongside the rest of the crew. Spog's friends include but are not limited to Bub, Whensley, and Dippity Doo.
by Leader Of The Children Of Spog December 31, 2020
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