I'd like to suggest the idea of spinning off a collection of firms and IPO it. It would be a great addition of tools in corporate world. I tried searching for this topic but I couldn't really find it so please redirect me if there is one already.
In my current game, after having acquired several companies that I think would be value accretive, I realize that despite the increased revenue and profit figures, my profitability ratios and margins have declined due to the mixture of product classes. A spin off feature will allow me to get rid of the offending product class and make money off of it as well.
It's similar to the ability to IPO a private company under the expansion pack poll topics but what I'm suggesting is simpler:
1. Choose the firms you want to group up to spin off,
2a. Choose the new CEO and name of the new corporate
2b. Give it some level of cash.
2c. Choose the % of the new company's shares to float.
3. Click "Spin off" button.
It will probably take just two screens or two dialog boxes to do this.
Some basic rules to Spin off:
1. the cumulative revenues of these firms must be larger than $XXX (I dunno what's the best balance, maybe $300mn or 500mn?)
2. must be profitable (maybe certain %?)
3. must have some minimum level of cash (say $50mn)?
3. The listing PE could follow the market PE (simplest but also more real-life like) or there might be a virtual bookbuilding (more complex).
4. Minimum % of shares to float can be 20% or something
It could also open up new gameplay strategies e.g.
- play as private equity firm who take companies private, restructure, recapitalize and re-list them at high multiples.
- much more flexible gameplay, mix and match assets from different acquired companies and spin off appropriately.
So hopefully it's something that can be implemented quickly in the near future releases?
Feel free to comment or if you think it's prone to abuse, redundant etc.
Thanks
Vince