Quote:
Originally Posted by Ray from NJ
I've been through several IPO's in the last 15 years. The recent Sarbanes-Oxley Act has changed the process dramatically. Before the bubble of 2000, companies could go public with just $10 - 20 million in revenue. Now you need $50 - $75 million for the investment bankers to even look at you.
SOX now costs a private company about $2 million to $5 million in preparation to go public.
Why the need for an IPO? Expansion? Original investors want liquidity?
As a public company, you'll have to have stable growth numbers quarter after quarter or your stock value will get hammered.
If you are an officer in the company and are thinking of cashing out, you can forget it. Your stock options will come with a lot of restrictions and will only see the light of day long after the IPO dust settles.
I'd stay private as long as I could in this market. Much easier to survive the bumps in the road ahead.
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Our reasons are that we feel we have a 3 to 5 year window before everyone is jumping on the bandwagon. We also think that there is going to be alot of speculation and we want to catch that wave. You guys are bringing up some very interesting points. Please keep it going.