I posted this last year, but thought I’d revisit the idea, what with the recent release of new products, new flavors of Grow!, the thread about Biotest’s business model, and the fact that I’m a money-loving whore.
Are there plans to take Biotest public? Can I buy, like 90% of the shares?
i don’t necessarily think that would be a good idea. Yes, they would have a lot more money to fund research for new supps, but the focus would have to move from providing the best suppliments to making the most money. Yes, they make money now, but as a public company that would be a much higher priority in order to appease the shareholders, and may change the way that Biotest does business.
[quote]frisbee wrote:
i don’t necessarily think that would be a good idea. Yes, they would have a lot more money to fund research for new supps, but the focus would have to move from providing the best suppliments to making the most money. Yes, they make money now, but as a public company that would be a much higher priority in order to appease the shareholders, and may change the way that Biotest does business.[/quote]
True… management’s focus would have to shift to building shareholder wealth. Also, you have all the reporting and disclosure requirements for a public company, not to mention the investor conference calls and all that jazz. As you say, it would have positive implications, but it would definitely be a trade-off. I think Biotest’s stock would end up being “under the radar” of Wall Street, given the type of company it is and its niche market (not that there’s anything wrong with that). The IPO probably wouldn’t generate a lot of hype. But you never know…
Given what we know/hear about big drug companies, I can imagine the competition and politcking would be fierce, and Biotest might not be large enough to hold their own against the sharks.
If they are considering it, you can bank on the fact that they will never, ever speculate on that idea here.
So saeth the Corporate/Securities lawyer…