Sven Beroll

Critical analysis of a potential Formula 1 IPO Sven Beroll

Bachelor Thesis from the year 2014 in the subject Economics - Finance, grade: 2,3, University of applied sciences, Munich, language: English, abstract: The potential Formula 1 IPO is analysed from a investor's as well as the issuer's perspective. The major opportunities and threats of the F1 are discussed. The aim of this thesis is to analyze a potential Formula 1 IPO critically. In the first chapter, the theoretical basis of IPOs is explained. A definition of IPOs is given, after which the different parties involved in an IPO are discussed. Then the key steps of the IPO process are outlined. Another important element of this chapter is the fundamentals of IPO price determination. The focus is on the company valuation, the process of price determination, and the phenomenon of underpricing. Different major stock exchanges are named and the exchange segments are discussed - with a focus on Germany. The chapter ends by naming the advantages and disadvantages of a public listing. The second chapter is about specific aspects of the Formula 1. After a brief description of the history of the Formula 1, the ownership structure is analyzed.