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What is the REAL Consequence of a Lower IPO Valuation
I have previously written on Unicorn valuations and the false impression that the last private equity round’s price multiplied by all the prior issued shares (all with different liquidation preferences and other terms) is the equivalent of what the company is worth as a whole across all its shareholders.
With the potentially dramatically lower IPO valuation of WeWork compared to...
Chessiecap Securities advises Global Teletherapy on its recapitalization with Graham Software Development

BETHESDA, MD – February 2019– Chessiecap Securities, Inc. (“Chessiecap”) is pleased to announce that it served as the exclusive financial advisor to Global Teletherapy, LLC in its recent recapitalization transaction with Graham Software Development (“GSD”).
Headquartered...
The Bifurcation of Start-up Capital
The increase in mega-rounds for start-up companies is not an indicator of a fundamental change in how most start-up companies will continue to seek and obtain their early rounds of capital.
...Reflecting on My Three Rules of Successful IPOs
A set of rules I wrote in the mid 1980s that I referred to as my Three Rules of Successful IPOs.
...Who’s Reaping the Gains from Unicorns?
The short answer to the question posed is...the last preferred stock investor with the top most liquidation preference is reaping the gains.
...Chessiecap Securities advises The Halifax Group on its investment in ChanceLight
Chessiecap Securities, Inc. (“Chessiecap”) is pleased to announce that it served as a financial advisor to The Halifax Group (“Halifax”) in its investment in ChanceLight Behavioral Health, Therapy & Education (“ChanceLight”).
...Response to Michael Beckerman’s “When I Finally Realized that CRE Tech was Gaining Serious Momentum”
My response to Michael Beckerman of The News Funnel about the importance I ascribe to the development of venture capital sources of capital as part of the ecosystems necessary for CRE Tech to gain momentum.
...The Debate Over Uber’s Valuation
The question is wrong. It's not "What’s Uber Worth?” because the premise that Softbank paid two different prices for the SAME share of stock is wrong.
...All Unicorn Shareholders Are Not Treated Alike
I have been frustrated by the false equivalency of public market valuations calculations applied to the last preferred stock financing of a private company. Here is my attempt to make a simple, understandable explanation of why the last private financing doesn't mean all shareholders own something worth the same as the implied valuation ballyhooed in the news.
...Historical Perspective on Technology Adoption
Sometimes even the best of technologies require generational transitions of leadership to see the full potential of the technology brought to the problem.
...Realizing Value in the U.S. International Development Market
Led by the Defense segment, the market of companies that primarily provide services to the federal government is consolidating. This article addresses how to value a company that operates in the International Development/USAID market segment, the state of that market segment, and how to consider realizing value for owners and shareholders through creative transactions.
...Middle Market Investment Update – Wireless Infrastructure Service Providers
The focus of this report is primarily on the wireless telecommunications infrastructure sector. The wireless carriers continue to experience massive demand for data capacity on their networks. This demand is driven by the explosive growth for mobile broadband services (i.e. smartphone, tablet and other devices, etc.) with an estimate of over 225 million active devices in service today.
...Chessiecap Securities advises Haiku Learning on its sale to PowerSchool
Chessiecap Securities, Inc. (“Chessiecap”) is pleased to announce that it served as the exclusive financial advisor to Haiku Learning, Inc. (“Haiku”) in its sale to PowerSchool Group LLC (“PowerSchool”). Founded in 2006, Haiku is a leading cloud-based learning platform developed exclusively for K-12 users with nearly 3 million users worldwide. The Haiku learning platform is widely lauded for its intuitive...
Chimes International’s Board of Directors Elects Douglas M. Schmidt As Chairperson
Chimes International, Ltd., a leading provider of services and supports to people with disabilities, today announced that Douglas M. Schmidt has been elected as the Chairperson of the organization’s Board of Directors. Mr. Schmidt is succeeding Patrick Bagley, a board member for more than 10 years and chair of the Chimes International Board of Directors for the past 6 years....
Palladium acquires CARANA Corporation
BRISBANE, Australia, Oct. 13, 2015 -- Palladium is pleased to announce their acquisition of CARANA Corporation.
CARANA, a US-based company, designs and implements economic development strategies for governments, companies and donor organisations. CARANA forges market-led alliances with private and public partners to address issues that affect vulnerable groups, such as...
Chessiecap Securities advises ClassLink, Inc. in its sale of its ClassMate student information system business to N. Harris Computer, an operating group of Constellation Software Inc.
Chessiecap Securities, Inc. (“Chessiecap”) announced that it advised ClassLink, Inc. (“ClassLink”) on the sale of its ClassMate student information system business to Harris School Solutions, Inc. (“Harris”). Terms of the transaction were not announced.
ClassMate is a specialized student information system designed specifically to meet the student data needs of non-traditional students. Founded in 1996 and focused on the...
Raising Significant Capital
Chessiecap Securities is pleased to announce a significant new capability for our clients: access to a rapidly evolving market of debt and equity capital from non-traditional funds. Over the past year, we have been developing this capability in conjunction with a highly regarded institutional research, sales and trading organization.
If you or your portfolio company will be looking for $10...
Wireless infrastructure Services- M&A and Investment Update
The pace of upgrade and construction of the wireless networks of the major MNO’s (“Mobile Network Operators”) was choppy in 2014. The 2nd quarter slowdown announced by AT&T and the historically bad winter weather presented challenges to the industry.
...M&A – Telecom Infrastructure Contractors
The focus of this report is primarily on the wireless telecommunications infrastructure sector. The wireless carriers continue to experience massive demand for data capacity on their networks. This demand is driven by the explosive growth for mobile broadband services.
...Chessiecap Securities, Inc. and The Washington Corporation Announce Strategic Merger
Chessiecap Securities, Inc. and The Washington Corporation today announced the combination of their two firms, creating a leading middle market investment banking firm headquartered in the Mid-Atlantic region. The combination provides both firms with a stronger platform to offer clients the highest level of investment banking services. In addition to establishing a critical mass of senior bankers, the...
ESOP Revival?
In recent months, we have fielded inquiries and assisted in evaluating and developing ESOPs (Employee Stock Ownership Plans) for companies that provide services to the federal government. ESOPs are front and center as a result of a slowdown in M&A activity in the government services industry, particularly for private company sellers. There are a few segments of the government market...
When Should You Be A Seller? Explaining M&A and the Business Cycle – Why Timing Matters
Timing the sale of a company can make a difference of millions of dollars. It is one of the most critical decisions an owner or an equity fund can make; however, successful mergers and acquisitions (M&A) can seem so serendipitous. There are plenty of stories of companies having the right product at just the right time – and being swept...
The Seven Deadly Sins of Entrepreneurs (And How to Fix Them)
It's an age-old and true maxim that great entrepreneurs usually don’t make it to the executive suite at IBM, GE, HP, or Exxon. Big companies love the upside – the passion, the long hours, the breakthrough thinking, the ability to inspire others, and the knack for getting lots done with few resources. For big companies, however, each element of upside...
Are Fairness Opinions…Fair?
Commonly used to justify transactions, fairness opinions have come under heavy regulatory and public scrutiny. Investment banks often issue supposedly "objective" opinions when there are substantial potential conflicts of interest that could have affected their objectivity. In some cases, the bank was actually advising the company on the transaction and had a large success fee at stake. Quite often, a...
Business Plans That Drive Transactions
Most companies view business planning as a necessary evil. Senior executives would rather be building new technology or talking to customers. For early and growth stage companies, the goal of business planning is to obtain funding to start or expand the business. For more mature companies, the main goal is usually to drive either an acquisition by a larger player...
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