IronPlanet: Looking for IPO Gold

Posted Mar 19th 2010 12:30PM by Tom Taulli
Filed under: SEC Filings, Products and Services, Initial Public Offerings

IronPlanet, which operates an online marketplace for used construction and agricultural equipment, has been growing nicely over the past year. Revenues spiked 56% to $54.7 million and profits went from $1.9 million to $12.9 million.

Now, IronPlanet is taking things to the next level -- that is, filing for an IPO. The company expects to raise $92 million.

Founded in the late 1990s, IronPlanet has built a robust marketplace, with roughly 1,600 sellers and 7,600 buyers (on an annual basis). Last year, the website processed about 30,000 transactions across 92 countries. Participants range from multinational corporations to sole proprietorships.

The IronPlanet platform helps provide better transparency, selection and efficiency in the sales process. There is also a proprietary inspection and report process (called IronClad Assurance). Of course, IronPlanet gets a fee for this service.

As for the company's target market, it is substantial. According to a report from Manfredi & Associates, global sales run about $100 billion per year.

The lead underwriters on the IPO include JPMorgan (JPM) and Deutsche Bank Securities (DB). What's more, IronPlanet has a top-notch group of investors, such as Accel Partners, Kleiner Perkins Caufield and Byers, Caterpillar (CAT), Komatsu and Volvo.

Tom Taulli advises on business tax preparation and is also the author of a variety of books, including The Complete M&A Handbook. His website is at Taulli.com.

Tags: Caterpillar, DB, inthenews, IPOs, IronPlanet, JPM, Komatsu, Volvo

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Reader Comments (Page 1 of 1)

3-19-2010 @ 4:14PM

Jimmy said...

Your information in this article is incorrect. IronPlanet's revenues grew 56% in 2009 to $54.7 million dollars, not $42.7 as you have it. You are listing Gross Profit which was $42.7 million for the year, not revenues.

4-15-2010 @ 10:39AM

Rodney O'Brien said...

As a customer of IronPlanet I think there management sucks. I have completed 10 transactions with them so I should have and idea what I'm talking about. For more details check out ironplanetipo.com