Over the last several years, middle market IPOs have been on the decline due to regulations driving up the cost and high public company operating and regulatory expenditures. In fact, in a 2013 Deloitte surveyof the middle market industry, an overwhelming 86 percent of privately held companies responded that it was unlikely that they would go public within the next 12 months. So how will middle market companies bridge the funding gap? This panel will address the role of institutional investors and crowdfunding in capital formation for middle market companies.
MY 5 PRESENTATION TAKEAWAYS:
- IPO Market will be continue to be dominated by large, later stage companies for the foreseeable future
- Middle Market companies increasingly looking to traditional and alternative forms of private capital – Including venture capital (particularly Micro-VC capital) and private placements (Angel Investors & Crowdfunding)
- The Future Effects of JOBS Act and similar regulations are uncertain – Whether they have a significant impact on the Middle Market IPO Market depends on the underlying cause of the decline. They will, however, continue to pave the way for easier and cheaper sources of capital for Middle Market companies
- Middle Market IPO Market NOT coming back in the near future – Even if current regulations help this IPO market, it will take a significant amount of time
- Expect to see an increase in Middle Market M&A activity in 2014 & 2015 – Particularly with respect to strategic acquisitions
A copy of my entire presentation can be found by clicking below: