In comparison to the statistics of the 2007 reverse mergers, www.ipohome.com states that the traditional IPO marketplace in 2007 produced 234 deals with an average deal size of $229MM with aggregate proceeds of $54 billion. This is an 18% increase in the number of deals closed in 2006 and a 6% increase in the average deal size. However, the aggregate total proceeds were impressive with a 25% increase from the previous year. The average return was down 50% dropping from an average of 26% in 2006 to 13% for 2007. Basically, what this tells us is that traditional IPO’s are still getting completed but the upside is limited. It also reveals that traditional underwriters are still only interested in IPO’s of companies that will have a billion dollar valuation.

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