Got IPO? Companies Need to Take a Long Range View
February 18, 2009 by Lela Davidson
Filed under Finance
Initial Public Offerings (IPOs) are down, and they will be for a while. A new study by Ernst & Young reports that the number of companies remaining in the IPO pipeline dropped to 57 as of the end of 2008. This represents a 30% drop from from the end of the third quarter.
However, there’s room for optimism says Maria Pinelli, of EY’s Strategic Growth Markets group:
“We’re likely to see the first signs of life in the pipeline from larger companies in established industries, rather than a surge from smaller companies.”
Jackie Kelley, IPO Leader for EY agrees.
“It’s important to have a long-term perspective. If companies want to position themselves to ride the first wave up as the IPO market turns around, they should start planning now for the organizational change, which can take 12-24 months.”
Long-term strategy. It’s a good thing.
Image Credit: artemuestra, Flickr
Long range thinking is always a good idea. And it is a good idea for those looking into investing in IPOs to slow down as well — finding solid companies that are likely to grow.