Managerial Finance Case of WeWork's IPO

WeWork Case Study
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WeWork Case Study
A vital concern in the business world is the positive connection between economic development and investments. Venture activities entail the constant search for the most efficient ways to combine resources and produce goods or services that meet market demand. Consequently, these activities are of particular interest to the process is corporate governance which holds the economy’s ability to match projects with financial resources and turn ideas into profits. Corporate governance is a system in which entities are controlled and directed. A corporate governance framework is crucial for successful outcomes at various investment stages by specifying the distribution of responsibilities among multiple participants to companies. In this paper, the focus is to address the failure of WeWork’s IPO concerning governance.
In effort to publicize, WeWork stirred up corporate issues in finance and leadership. The company filed its paperwork publicly, only to encounter scrutiny about finances and governance from investors. One of the significant concerns about the company was its path to profitability and senior leaders like Adam Neumann. Some criticism drawn from the leadership pointed out that “Several of Neumann's immediate family members worked for the organization.” Much success of most profiled entities is attributed to single figures depicted in WeWork upon Neumann's removal. WeWork provided office space to companies of all sizes and had a peak valuation of up to $47 billion by 2019, built on the focus on influencing the comm...