However, the success of We Company’s strategy over the long-term has been questioned by some of the most prominent commercial property investors, such as Sam Zell and Barry Sternlicht. Listing in the shadow of Uber and Lyft’s disappointing IPOs, the We Company faces a big challenge, according to David Erickson, a senior fellow and lecturer at Wharton and former Wall Street vet. While acknowledging the importance of press coverage of the company’s valuation, Erickson noted that analysis should begin with its management and governance structure. “Investors are going to be looking for more information about how this company is run before they can make an informed decision on whether or not it’s worth investing in,” he said. ; Neumann’s plan to retain more than 50% of the votes in the public company; and the extensive section on “related party transactions" in the IPO filing. Ultimately, the deal will rest on how much confidence potential institutional investors have in whether the company can generate equity value for public shareholders, Erickson said.
Listing in the shadow of Uber and Lyft’s disappointing IPOs, the We Company faces a big challenge, according to David Erickson, a senior fellow and lecturer at Wharton and former Wall Street vet. While acknowledging the importance of press coverage of the company’s valuation, Erickson noted that analysis should begin with its management and governance structure. “Investors are going to be looking for more information about how this company is run before they can make an informed decision on whether or not it’s worth investing in,” he said. ; Neumann’s plan to retain more than 50% of the votes in the public company; and the extensive section on “related party transactions" in the IPO filing. Ultimately, the deal will rest on how much confidence potential institutional investors have in whether the company can generate equity value for public shareholders, Erickson said.