Luxury Coach & Transportation

November 2018

Magazine for the professional limousine, charter and tour industry.

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OPERATIONS: CLIENT MARKETS Roadshows: How To Work An Industry Moneymaker The most challenging chauffeured run requires a flawless performance, since millions of dollars are at stake for client teams. By Jim A. Luff, LCT contributing editor T he term "roadshow" is a com- mon industry term. ese highly demanding jobs are associated with the bank- ing and investment world. ey require professionalism, knowledge, and precision. A roadshow typically involves travel within major financial hubs such as New York, Los Angeles, Chicago, Phila- delphia, and Boston. During a road- show, bankers, analysts, and private business owners visit financial brokers such as Merrill Lynch and Goldman Sachs in an attempt to take their company public through an IPO. e schedules are very tight, and one late or missed appointment could spell di- saster for the travelers and cause them to lose potential buyers worth millions. ere can be no mistakes. What Exactly Is an IPO? IPO stands for Initial Public Offering. Companies such as Microsoft, Dell, and Pizza Hut were all companies started by an individual and operated as privately held corporations with one owner or a handful of investors. In simple terms, taking a company public means the company will be sold to investors in "shares" of the company. Companies such as DocuSign and Dropbox went public over this past summer. Yext went public in April 2017. In the case of Yext, founded by Howard Lerman, his public offering brought in $116 million on the day it hit the New York Stock Exchange. e IPO was led by J.P. Morgan and Morgan Stanley. e initial 10.5 million shares were sold for $11 each. By the next morning, the shares were valued at $13.42 each. To get to this point, Lerman and representatives from his investment bankers visited the offices of many regional investment firms to share information about what they were sell- ing. ese presentations can determine whether an IPO will succeed or flop, as the regional offices each have regional investors who may commit to pur- chase during the IPO. Most companies consider going public once revenues top $100 million annually. IPOs are big business with big consequences. Getting In The Door Securing a contract to handle road- show work is tough, says Tami Saccoc- cio, the director of operations and glob- al affiliate relations for Commonwealth Worldwide Chauffeured Transportation of Boston and New York, an aggregator in the roadshow market. To get on the list requires an in-person presentation that may need to be done in New York, Los Angeles, and Chicago so "roadshow desk " managers have an opportunity to see what you have to offer. Eric Devlin, CEO of Premier Trans- portation in Dallas, was fortunate enough to have a family member run- ning a financial management firm who basically told anyone requesting a meet- ing to use Premier for transportation in Dallas. However, Devlin no longer tries to market to investment bankers such as Merrill Lynch. Most of the big players in the financial industry use East Coast- based companies such as Boston Coach and Commonwealth, Devlin says. Roadshows account for more than half of Commonwealth's annual rev- enue, Saccoccio says. She and Devlin say roadshows require a transportation provider with a genuine global foot- print. In the case of Yext, presentations were made in Europe in addition to 2 0 WWW.LCTMAG.COM LUXURY COACH & TRANSPORTATION NOVEMBER 2018 Once you have provided the vehicle and chauffeur information and phone numbers, do not make any changes, advises Tami Saccoccio, the director of operations and global affiliate relations for Commonwealth Worldwide Chauffeured Transportation of Boston and New York.

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