Notwithstanding the fact that the last several weeks did not go
as planned for a few of the companies pricing or looking to price
IPOs, and the associated speculation that the IPO window may be
narrowing (if not closing) for tech and biotech companies, the IPO
climate has recently been strong and sustained. While market
conditions are crucial to the timing of any public offering,
entrepreneurs and executives should also consider internal company
factors when thinking about the right time to take their companies
public.
Here are a few points to consider:
(1) Going public and capital raising as a public company are
expensive. IPOs and subsequent public offerings come at a
substantial cost, which should be factored into the analysis of the
cost of the capital to be raised in the process. Even at attractive
valuations, the underwriting, legal, accounting, and other
transaction costs of an IPO or subsequent public offering often put
a company in a position where the
