Want to join IPO revival? A few tips for directors
Boards should take note of changes in market and industry conditions
This year marks the resurgence of the US market for initial public offerings (IPOs)—even despite the market turmoil sparked by the credit crisis. In fact, the number of IPOs conducted during first three quarters of 2007 are at levels not seen since 2000. Privately-held companies—many of which were acquired by private equity firms, or commenced operations, in the aftermath of a bursting internet bubble—have reached a level of operational maturity necessary to conduct a successful IPO. And they are flocking to the capital markets.
This mini-boom in the IPO market is welcome news to directors of privately-held companies. But are they prepared for the IPO process or, for that matter, for their companies to be publicly traded? This article discusses the myriad of issues to be explored by the board prior to launching an IPO.