The recent publicity surrounding Facebook’s IPO – information leaks, underwriter control, and post-IPO trading, highlight some of the downsides of a traditional underwritten IPO. The fallout – many lawsuits have been filed already, naming the company, its officers and directors, the underwriters, and even NASDAQ as defendants – will be long and expensive.
If you are reading this blog, you are probably engaged in or around, or investigating, alternative IPO’s. The term encompasses a wide variety of alternatives to the traditional underwritten IPO, including a reverse merger, or the oft-recommended direct IPO. We have an entire page on our website devoted to private-to-public transactions, which can be found here.
This is a good time to revisit the benefits of an alternative IPO, and whether one is right for you.