Paradigm Shift for IPO’s

What private companies need to understand is the IPO marketplace is now experiencing a major paradigm shift. There are usually 55 IPO’s that are performed per quarter with the third and fourth quarters usually being the most active. The average IPO in the last five years raised $200 million. When you examine that number it reveals most of the companies that go IPO have close to a billion dollar valuation. In the third quarter of this year IPO’s were down 87%. The fourth quarter will most likely get worse, not better. During the meltdown of Wall Street in October most of the big firms that were underwriting IPO’s transformed themselves into “banks”. So, if the IPO market is that depressed for companies approaching billion dollar valuations, how will an emerging growth company go public in the future?

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