June 07, 2011



Is there value in Groupon’s upcoming IPO?

Business valuation expert available


Hamilton, Ont. June 07, 2011Michael Carnegie, a Chartered Business Valuator and AIC Industry Professor in Strategic Business Valuation at the DeGroote School of Business is available to discuss the widely anticipated IPO of the popular daily deal site Groupon.


“Groupon’s operating results show significant losses and management indicates that the losses result from the cost to acquire members.  Investors need to ask: What is the true profitability? Is it growing? Is it sustainable?” says Carnegie.


The implied value of the upcoming IPO suggests profit is growing but Carnegie believes Groupon does not have a particular advantage over its competitors. “For a competitive advantage to be sustainable, it must not be easily replicated.  Does Groupon have a growing member base that will continue to buy coupons and suppliers that will continue to use Groupon to distribute coupons?  I think the answer to both questions is ‘no’. It seems to me that the business model is too easily copied.  There is speculation that Groupon has already lowered its coupon listing fee in response to competitive pressures,” says Carnegie.


Television Editors – Live interviews with Michael Carnegie can be arranged using McMaster’s broadcast studio. Call Leah Rosenthal at 905-525-9140 ext. 27436 to schedule airtime and book a live feed from campus.


Radio and Print Editors – Contact Michael Carnegie directly (905)645-5576 or mcarnegie@taylorleibow.com to arrange an interview.




For more information contact:


Leah Rosenthal

Communications Officer

DeGroote School of Business, McMaster University

905-525-9140, ext. 27436