Sometimes the market proves a tough grader. In April 2000, MasTec's stock reached a high of more than $60 per share; currently it trades in the $2 to $3 range. Yet company revenues have dropped only slightly, from $1.3 billion in 2000 to $1.22 billion in 2002. Other companies could quietly ride out such a downturn, but not those on the New York Stock Exchange, like MasTec.
Through it all, the company has not paid directly for its capital. "We have not declared any cash dividends since our inception, and we do not intend to pay any cash dividends, but intend instead to retain any future earnings for re-investment in our business," says the 2001 annual report. The Mas family still owns 45.8 percent of MasTec shares.
Besides financial details, CEOs pondering an IPO should consider the competitive implications. "Make sure you are prepared to operate in an 'open book,' full-disclosure mode," warns Mr. Candela. "Many operational components of your business will be disclosed in periodic filings with the SEC [Securities & Exchange Commission]. This can put you at a competitive disadvantage with some non-public companies that are not required to disclose details of their business operations."
Case Study: Sterling Financial
Most entrepreneurs would consider themselves blessed to have Charles Garcia's problem when it comes to raising expansion capital.
"The problem for us has been that a lot of people have thrown money at us and we've had to walk away," says Mr. Garcia, chairman and CEO of Sterling Financial Group of Cos., a Florida-based investment-banking firm.
"We're looking for the right partner at this stage of our growth."
|Top SBA Lenders to Hispanics|
|Lender||Number of loans to Hispanics||Value of loans to Hispanics ($M)||Total number of loans||Total value of loans ($M)|
|Bank of America||443||$26.1||3,918||$248.3|