Technology transfer, Land Sales, IPO

[Slimp]

A few suggestions:

- In the case of an IPO of a subsidiary the player should have a choice between issuing new shares and selling a share of the owned shares. In the first case the company gets the money and in the latter the the parent company

- Technology transfer between subsidiaries could be easier. For example with boxes you can choose which technologies you want to transfer. One time or also updating the technology. I dont mean that the parent company should have access to all the technology and the purchase itself would still exist, but just in an automated way. Updating would mean the buying company would pay for new technology automatically.

- A subsidiary should be allowed to build buildings on land of the parent company. As soon as the subsidiary builds, cash for the land is transferred to the selling company.

I am not sure whether some of this is already implemented, since im still playing with an old version.

Thanks

[anjali]

-IPO
the IPO is kinda like IRL with the exception that you dont need to have 12 million assets and minimum 50 shareholders and the restriction of selling stock of existing shareholders doesnt exist either
but the company is valued and new shares are given to the existing shareholders to reflect the 10$ per share, you have to issue new shares that you offer to the public, existing shareholders are usually prohibited by mutual agreement to sell their stock for 180 days (max 185days) from point of IPO for a more stable price of stocks. this mutual agreement is signed before an IPO or when founding the corporation this is already included that way you do not need to chase everyone to get this agreement signed. also the main purpose of an IPo is to raise funds for excessive expansion of the company, not to fill your personal pocket ^^. anyway you usually are a paper millionair anyway after an IPO but thats just a nice side effect to make the VC banks rich.
with other words the cash is always going towards the corporation and you as the shareholder only gain in form of additional shares to reflect the market value and a raising market value if ya company s doing well.

-technology transfer
its something that depends on player strategies, personally i am fine with the way it is right now

-building on parant company land
+1 for this, would save quite a few clicks to dispose of land before your sub can build something

[Arcnor]

I agree on the tech transfer and the land building. I like how the current IPO system works.

[Jaskan]

the game needs a way to transfer tech to subsidiary.

Did a massive radical RD, wanted to sell tech to subsidiary, the game would not let me sell the tech for less than 2.3Billion, which subsidiary did not have.

Had to get money from another subsidiary into my account, then transfer to subsidiary I wanted to upgrade tech for.

Maybe its easiest just to add transfer option, so no money paid.

But should also allow you to put a price if you want, cause its about the most convenient way of exchanging cash with subsidiaries without strings attached.

[Slimp]

For me an IPO is also the only way to sell my subsidiary. Useful if you acquired a large diversified company but you were just interested in a part of it. So you could spin of the other part and and cash in.

I think it is good that you cant transfer technology for free, because as far as i know its the same way in reality. This way it requires a deeper strategy how you want to handle your technology. But it should just be more supported by the interface.

[anjali]

For me an IPO is also the only way to sell my subsidiary. Useful if you acquired a large diversified company but you were just interested in a part of it. So you could spin of the other part and and cash in.

how is it possible that IPo is the only way to sell your subsidiary?, as written above, IPO is the only means to access huge amounts of capital for massive expansion. not about selling a company. and if you aquire a huge diversified company, how can you IPO it as its already registered at the stock exchange? you dont need to sell it off either, you rip it apart and move assets to whatever company needs to receive it, and once you get an empty shell that just has cash and and tech and Stocks, if any, you merge this empty shell into your parent corp by paying cash for the remaining outstanding shares, as you certainly dont need ingame more outstanding shares of your own corp, as you got more then enough cash. in reality you would merge by handing out shares as you can never have enough cash.

I think it is good that you cant transfer technology for free, because as far as i know its the same way in reality. This way it requires a deeper strategy how you want to handle your technology. But it should just be more supported by the interface.

yup irl usually the parent corp issues a licence to the sub to use the tech for production and pays anual or per piece licence fees to the parent. how much is depending on individual tax strategy of the company and where which company is located, as somehow most profits must be streamed to 0% tax heavens to avoid paying taxes, as it aint funny if ya make $100 bn and you have to give $35bn to the gov. better pay $100m and pay 0% tax on the remaining profit in tax heaven ;p makes shareholders happy

[Slimp]

how is it possible that IPo is the only way to sell your subsidiary?, as written above, IPO is the only means to access huge amounts of capital for massive expansion. not about selling a company.

Thats exactly what i want to change. IPO should be a way for both, shareholder and company to access money. Why do I want this in the first place? It is also about massive expansion, not for my subsidiary but for my parent company. I like to build TV Stations as early in the game as possible, because they take time to develop and are turning in a huge cash machine over time. I like to have those in my parent company, because AI are bad in handling them. To do so i need a lot of cash. The easiest way to get this much cash in the shortest time is to build up a company with products that need not much advertising and bring this subsidiary public. Once my TV Stations are built Im ready to take on the world.

Im writing this just to give a bit more colour on what i mean.

and if you aquire a huge diversified company, how can you IPO it as its already registered at the stock exchange? you dont need to sell it off either, you rip it apart and move assets to whatever company needs to receive it

Yes, but if i dont want to be in that business i can bundle all parts in one subsidiary, of course under current IPO rules it does not make much sense.

[anjali]

how is it possible that IPo is the only way to sell your subsidiary?, as written above, IPO is the only means to access huge amounts of capital for massive expansion. not about selling a company.

Thats exactly what i want to change. IPO should be a way for both, shareholder and company to access money. Why do I want this in the first place? It is also about massive expansion, not for my subsidiary but for my parent company. I like to build TV Stations as early in the game as possible, because they take time to develop and are turning in a huge cash machine over time. I like to have those in my parent company, because AI are bad in handling them. To do so i need a lot of cash. The easiest way to get this much cash in the shortest time is to build up a company with products that need not much advertising and bring this subsidiary public. Once my TV Stations are built Im ready to take on the world.

it does bring money to the shareholder (paper money) for VC's its the most profitable way to exit out of a start-up they ve invested in but with the 180/185 days clog period in which they cant sell the shares. you get the cash once you sell those shares on the stock market. on the other hand you could merge the subsidiary into your parent corp after the IPO by issueing new shares in exchange for existing, given that you still got 75% ownership after IPO and makes most sense if your parent corp shares are heavily over valuated and the sub's share price is below equity value, then you get the most assets for less shares.
it will of course lower your ownership in your parent but, as this is cap lab and not realworld, you can just keep issueing shares to public and buy them with the few billion $ anual salary you are paying yourself in order to buy new shares, cost the company a lot of money in salary expanse, but who cares the money comes back as new paid-in capital so just a circulation which always ends in the companies pocket.

and if you aquire a huge diversified company, how can you IPO it as its already registered at the stock exchange? you dont need to sell it off either, you rip it apart and move assets to whatever company needs to receive it

Yes, but if i dont want to be in that business i can bundle all parts in one subsidiary, of course under current IPO rules it does not make much sense.

i have no problem to squeeze a ton of money outa the companies i am taking over, i dont even take loans as the subs burry all the loans and its interest, they re loaned out to roughly 60% LtV or even higher thus cant take a single penny more loans ingame as the cap is around 50% LtV or lower if you got lots of assets in shares. and everytime i merge another company into one of my subs they merge by paying for all outstanding shares in cash (>90% of stock is usually in the parents hands) so i dont need to move all assets around and found a new sub which wastes precious ressources just to IPO if i can just play with the current companies and its stock. therefore i have 1 main real estate sub, which is merging in any new real estate corp i aquire majority shares, and for companies that are producing goods, if i aquire 1 with high brand rating, i keep it for a couple years as it takes time to build brand to take over their products, i merge any sub with no brand into those its a permant cash infusion which i really dont need. i dont know either how early in the game you want to aquire media firms, but i dont bother with them for a few years, because they are of no help in exponential growth in this game. as they are long term investment. i dont spend a penny on advertising in the first 4-5 years, just every penny into growth to start as soon as possible to buy any stock with a price far below equity value of the share.
even if i IPO i usually do it when i get a valuation thats 5-6 times higher then the equity and then i issue 20 max 30% of shares which is quite a good profit i usually do it in the first year of the game as i rather take a 5-6 times higher valuation then trying to reach a 1000% profit as every day i have to wait for the cash infusion sets me back in my massive growth. at the end its a business sim, and the game did match real world as good as they could, and changing the IPO to private pocket money is just contraproductive towards the attempt to make it as close to realworld as possible.

[azxcvbnm321]

I agree with Anjali, what the OP wants, if I understand correctly, would be illegal in the real world unless he owns 100% of the parent company also. If the shareholder wants to raise cash, all he has to do is sell shares on the market and have the parent company buy those shares back immediately (pause game). Now he has more cash and still 100% ownership in the parent company. If the parent company needs money, issue more stocks or go IPO and have the shareholder purchase all shares immediately.

You cannot transfer technology for free because each corporation/subsidiary/person is supposed to be a different and independent operation. If you don't have 100% ownership, then you are damaging the other shareholders by giving away valuable tech/assets for less than market value. That is called corruption and leads to jail time and lawsuits in the real world. If you have 100% ownership in all entities, then it's just a matter of transferring money across subsidiaries and corporations doing what I suggested above, which is to either issue shares or buyback shares.

The IPO system works fine, I guess I don't understand what the OP wants, it seems that whatever he wants can already be done if he knows how to do it.

[Slimp]

What i wanted to do in one sentence:

Doing an IPO without issuing additional shares in a way that increases the capital of my company, but offering my shares to the public in the IPO process. This is definitely not illegal in the real world.