"What CA wants to find doesn't have a title. It wants 'hot stuff', so I tell people 'Come on, surprise us'." - Uzi Betat, technology hunter in Israel for Computer Associates (CA), quoted in the Arena .
Cisco International is to station in Israel a person in charge of business development for local start-ups, with the aim that Cisco should buy their technologies, Cisco vice-president for business development Mike Volpi, who is responsible for acquisitions at the company, told "Globes" .
You learned from the Arena that Cisco and Computer Associates are interested in Israeli companies and technologies. You want to approach either of them or both and try to get them interested in your company.
Today’s column will show you how to use the Internet to make sure you can surprise companies like CA and Cisco – and how to avoid unpleasant surprises for yourself.
Getting to win-win relationships
If you are going to enter into a win–win relationship with leading a publicly traded company, the first step is to make sure that you know as much about the company as possible. This includes its business, strategies, tactics, financial situation, and key personnel. It would also be great to learn about any mergers and acquisitions in which it has been involved, and their terms. All of this and more is available for free on the Internet thanks to the US Securities and Exchange Commission (SEC).
EDGAR – Database of vital business information
All US publicly traded companies must file an extensive annual report with the SEC. This report is known as a 10-K, and it contains information like company history, organization, nature of business, equity, holdings, earnings per share, subsidiaries, and other financial information. Companies must also file a 10-Q quarterly report, providing a continuing view of a company's financial position during the year. Other documents that must be filed include an 8-K time sensitive document covering significant corporate events, Proxy Statements, and other periodic reports. Since May 1996, the SEC has required that all reporting companies file their reports electronically. This means that once a document is filed, the information is available immediately to anyone who can reach the SEC’s database known as EDGAR (Electronic Data Gathering and Retrieval).
There are several ways to reach EDGAR via the Internet. One way is through the SEC’s free Website. This site is government run. There are also several privately maintained sites that use the SEC information, but add more features and value. These sites include:
Special deal for Arena readers
I believe that EDGAR Online is most effective and easiest to use. Its basic services are free, its links very useful, and its customer service is excellent. In addition, EDGAR Online Premium provides exclusive features developed to help you gain the power of timely business intelligence. All of the advantages of this service are explained in detail at www.edgar-online.com/regopt.asp.
Through a special arrangement with EDGAR Online, Arena users can now have a free two week trial use of EDGAR Online Premium. Go to the following URL to sign up for the free trial: www.edgar-online.com/trial.asp?src=GlobeBusiness.
EDGAR Online in action
While a 10-K provides valuable information, EDGAR can provide much more critical business intelligence than a company’s annual report. For example, you know from the Arena that Cisco’s Vice-President for Business Development is Mike Volpi, and that he is also responsible for acquisitions at the company. You take advantage of the free offer to Arena users and log on to EDGAR Premium. You go to "People Search" and key in "Volpi". Jackpot!!! You not only find information on Volpi, but you find a document containing very detailed information about a merger between Cisco and a company called Summa Four. Read this and the other documents you find very carefully – they will provide you with an excellent head start in any future dealings with Cisco.
In sum, before getting involved with any publicly traded company, your best first step is to take advantage of EDGAR.
Next week – more on EDGAR, and additional business intelligence tools.
Note: Arena links open in current window. External links open in new window, to facilitate toggling.
Published by Israel's Business Arena on March 9, 1999