Many people have long argued that space exploration belongs in the public sector. Space exploration is not only costly, but profit-driven businesses detest its hazy economic prospects. Furthermore, detractors fear that the commercial sector’s engagement in space will contaminate pure science and result in unchecked land grabs that will be challenging to resolve in traditional courtrooms on Earth. However, since the beginning of space research, the private sector has been involved in space exploration. The Saturn V rocket was constructed by Boeing and its allies, not NASA. Similarly, for many years, private businesses have developed, launched, and maintained satellites in addition to providing equipment and spacecraft to NASA, the European Space Agency, and other initiatives.
Nevertheless, it appears that significant private investment in space is about to happen. NASA needs commercial missions to replenish its spacecraft supplies. Private businesses are funding space exploration and mining endeavors in the interim. However, there aren’t many pure play chances for investors to take part in this development. There has always been some degree of space exposure available to investors, but never to a significant degree. Building rockets, spacecraft, satellites, and a variety of other systems needed to run space programs are Boeing (BA), Lockheed Martin (LMT), and Northrop Grumman (NOC) companies.
Unfortunately, there is rarely a direct correlation between this space-based revenue and the company’s overall profitability. Additionally, this money is frequently associated with military endeavors, making it challenging to distinguish between “space revenue” and “defense revenue.” A satellite operation is a branch office or tiny office located away from the main headquarters of a business or government organization. Numerous industries, including financial advisors and brokers, physicians, the Department of Motor Vehicles, corporate offices, and political offices, can benefit from satellite operations. Because they can promote more effective customer service, client relationships, and sales, satellite operations are beneficial. Having a local agent they can call on may be preferred by many clients.
Although a satellite operation might have considerable autonomy, it is neither a subsidiary nor a distinct legal entity from the main business. Due to this structure, a foreign parent company may become liable for both legal and tax liabilities depending on where the satellite business is located. A branch manager overseeing most satellite operations will usually report directly to and take orders from a member of the main office management team. A satellite operation could be a big office with multiple employees or a home office with just one employee and no signage.
Broker-dealer agents operating from their homes may utilize satellite offices, but they are not permitted to present to the public as an extension of the broker-dealer’s physical office. Broker-dealer registered representatives operating from satellite offices are required to report to a branch office, carry the branch office address on their business card, and route all emails through the branch email server. In addition, setting up a satellite operation guarantees that workers will have access to a productive workspace. As some of you may already be aware, working from home at your kitchen table can be convenient, but it’s not necessarily the ideal environment for getting things done.
In addition to providing a workspace, a satellite office can serve as a discreet and polished location for business meetings. Businesses can avoid spending money on pricey conference rooms and hotel rooms by using a satellite office. Expanding companies are fond of satellite operations. For instance, a satellite operation enables you to avoid the possible logistical nightmare of a mass movement while providing you with additional, flexible space in a new location that can fulfill a range of needs, as opposed to moving a whole business to a new site. A satellite operation can serve as a safeguard in the event of a protracted migration, in addition to posing fewer logistical challenges.
Satellite offices are also an excellent option for expanding organizations looking to partner with other businesses in the same industry. Your firm can gain and expand by integrating your best employees with those of other organizations in a shared office. The goal of qualitative analysis as a research method is to comprehend people’s social realities through the collection and analysis of non-numerical data. Furthermore, for many businesses, NASA’s space exploration budget has little impact on top-line sales. Historically, contracting has received around 80% of NASA’s budget on average.
Space exploration pure plays have already gone through their first generation. Previously, Orbital Sciences was listed on the New York Stock Exchange (NYSE) and produced rocket systems for both government and commercial clients. After merging with Alliant Techsystems in 2014, it was acquired by Northrop Grumman in 2018 and rebranded as Northrop Grumman Innovation Systems. Despite all of the advancements made by private space enterprises, investors essentially only have Virgin Galactic as a choice when it comes to making an investment that is directly related to space and space exploration. The portion of what businesses like Boeing and Northrop Grumman do that involves commercialized space is simply too little to justify that investment perspective.
Although there has been discussion of Elon Musk’s SpaceX going public, Musk has said the firm would stay private since its long-term objectives don’t align with the short-term requirements of public markets. Investors wanting to profit from the upcoming initial public offering (IPO) guided by Musk are not helped by this at this time. Eventually, though, investors might be able to support a wide range of space-related projects, including interplanetary travel, asteroid mining, suborbital spacecraft, commercial launch services, and spacecraft manufacturing. However, investors are currently constrained by the weight of earnings, viable addressable markets, and sustainable returns on capital.
