It’s not your imagination: CEOs aren’t lasting that long. The recent news of scandal and bungled initial public offerings are only a handful of reasons why CEOs have lost their jobs.
Companies are increasingly staying private for longer, raising ever larger amounts from private equity and venture capital. SoftBank Technology Corp.’s Vision Fund took the lead in an $8 billion backing of Uber in January 2018, a little more than a year before the company’s IPO, valuing the business at $48 billion.
Despite a government shutdown in early 2019, the IPO market has been fairly strong. Early signs indicate that 2019 could come close to a record last set in 2000, when $97 billion was raised in the dot-com bubble.
Two IPO experts share advice for private equity leaders ahead of going public. They also discuss popular types of IPOs, the trend of direct listings, and why super shares are bad for companies in the long term.
Kathleen Smith, co-founder, Renaissance Capital, talks about how investors uncover and profit from Initial Public Offerings.
Every year, growing companies consider exploring public markets, where they can find the huge benefit of immediate access to capital. But taking that step also can be a large expense, and it can change the way companies operate, what management teams focus on and how autonomous they are. Senior executives making decisions about going public have a lot to think about.