MBSA 1453 Financial Management and

Corporate Governance

Answer the following questions based on a video entitled Marcus Lemonis: Why an IPO
may not be the answer.

1. Who is the interviewer?

a. Marcus Lemonis,

2. What is the name of the show?

The Profit and CEO of Camping World,

3. Who is the interviewee?

Abe Issa's thriving green-energy startup, Global Efficient Energy

4. What is the subject matter?

The best method to get financing .

5. What is the main business of Global Efficient Energy?

Solar panel , energy consulting service.

6. How much sales has been recorded by Global Efficient Energy?

a. $60 million in sales this year, with a 15 percent profit

margin
7. In the video, Lemonis said about capital intensive. What is a definition of capital
intensive?

a business process or an industry that requires large amounts of money and

other financial resources to produce a good or service.

8. What is Issas main concern?

Accelerate the growth of company.

9. Why Global Efficient Energy eye on going public?

To raise capital.

10. From the conservation, there are three other that Issa will consider rather than
going public. Explain in brief of all the options.

Traditional financiang, strategic equity partner.

Prepared by: Dr Maizaitulaidawati Md Husin
 MBSA 1453 Financial Management and
Corporate Governance

11. In the video, Lemonis said about Capex and EBITDA. What is a capex? What is
EBITDA?

Capex capital expenditure.

Earnings Before Interest,

Taxes, Depreciation and
Amortization
12. From your opinion, why Lemonis advises to go for traditional bank cash flow
financing rather than IPO?

IPO - pay dividend. Lost company control.

Bank cash flow financing pay interest.

13. Do you think licensing deal and revenue share model will help Global Efficient
Energy to achieve fast growth?

Earn from Copyright licensing, franchising.

Prepared by: Dr Maizaitulaidawati Md Husin