Does the S-1 disclose the fact that the founder is also one of the company’s biggest business partners? He buys up properties and then leases them to WeWork. Seems like a red flag to me.
"We are party to lease agreements for four commercial properties with landlord entities in which Adam has an ownership interest..."
Is this a normal sort of thing to see in such a filing? He's being referred to by his first name and heaped with praise.
Adam is a part of everything. He is in the sky and sea. He is in the dreams of children at night. He is all that there is, forever.
But yeah, red flag a mile wide.
(A hedge being where you take some of your money and buy protection against downside risk. For example, since I'm in tech, it's in my interest to sell some of my company stock and buy something that is uncorrelated with tech. That way if my company blows up, I won't be totally broke. The Texas hedge is doing the opposite, so that you're even more screwed if the bet doesn't go your way.)
This could indicate confidence, but it could also indicate a double-or-nothing mentality. You can only be so bankrupt, after all.
Even if the company removes the founders they're going to be getting that lease payment forever.
https://www.irs.gov/businesses/small-businesses-self-employe...
The laundering aspect may have a grain of truth in a way though; instead of having e.g. an investment or sale paid out (and consequently taxed), it's rerouted into buying a building. Why pay I dunno, 50% income tax to get the money right now instead of reinvesting the money and long-term earning a lot more?