Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
Wall Street banks are expected to analyze WeWork’s finances on Wednesday ahead of its reported September IPO.
So far, WeWork has received over $10 billion from banks in venture capital, which has led many experts to question whether the company can sustain on its own.
The coworking firm is also seeking to raise $6 billion debt before the IPO, which would help cushion the company in case of future cash needs.
Analysts will also grill WeWork on whether it has stabilized its operations and is making money according to Alex Snyder, senior analyst at CenterSquare Investment Management.
“When will you be self-sustaining?” said Snyder. “When will you be profitable without continually having to ask for more and more money from debt holders and equity investors?”
Investors will also question WeWork’s $34 billion in lease obligations in light of a new accounting standard from the Financial Accounting Standards Board (FASB) that took effect this year that requires companies to list all lease assets on their balance sheet.
Many landlords have embraced the idea of flexible workspaces, but the nature of short-term contracts could pose an investment risk during an economic downturn.
