Usually about this time of the year, there is a variety of stories that predict a comeback in the IPO market. But, of course, it has yet to materialize.
Basically, the dot-com implosion left many scars. Besides, with Sarbanes-Oxley, it is much more expensive to go public.
According to a recent piece in CFO.com, however, there are optimists out there.
Why might we see a comeback this time? Well, VCs and private equity firms need to get liquidity.
Besides, the portfolio companies have had lots of time to refine their business models and demonstrate their growth prospects. In other words, there are plenty of high-quality companies that should get the attention of investors.
No doubt, the recent strength in the equity markets may certainly be a big help. This was likely a key reason for the big-pick in IPOs during the fourth quarter.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
