Wednesday, November 21, 2007

Deltek's Second Bite at the IPO Cherry (Part I) » The TEC Blog

The Technology Evaluation Centers blog has a good article summarizing Deltek's business strategy and product history.

Deltek's Second Bite at the IPO Cherry (Part I) » The TEC Blog: "it is very likely that many passages from the Deltek’s 1997 S-1 filing were leveraged 10 years later too (after all, most products are still the same and serve the same customers). In fact, it is quite likely that the justifications for the IPO back in 1997 sound quite similar to those of Parker’s today (e.g., expansion, improved brand recognition, visibility, and whatnot). Deltek had indeed made a number of acquisitions previously as a public company and had reached the US$ 100 million mark by 2002. The de-listing at the end of 2002 was justified by the fact that being public was just too much of a hassle and unneeded expense for the C-level executives (due to the just introduced Sarbanes-Oxley Act [SOX]-compliance then, etc.) without much real benefit. This was particularly true in terms of the (lack of) freedom to make decisions (i.e., the market nervousness often stifles the CEO to make bold and risky moves). Thus, why should anyone believe that this time the IPO will work much better than before, especially given the timing of poor stock performance across the board? Is there anything fundamentally different at Deltek now compared to 10 or five years ago?"


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