While the IPO market may have had an unimpressive year in the U.S., some analysts are expecting 2013 to be a bigger year for companies and investors looking to get involved with the market as the economy strengthens.
Expectations for 2013
An annual survey conducted by KCSA Strategic Communications revealed that 35 percent of attorneys who advise in IPOs expect 2013's market to be more successful than that seen in 2012. Most voiced hopes about the improving U.S. economy, stabilization of the European debt crisis and consumer confidence as reasons they anticipated the IPO market would improve.
"Since the end of the financial crisis that started in late 2007, there have been strong hands on the reigns of the U.S. capital markets, slowing down the IPO market," said Jeff Corbin, CEO of KCSA. "While there have been some big names that have gone public during the last few years - Facebook, Zynga and others in the social media space - the vast majority of those companies that could have, and should have, accessed the public markets, have had to wait for improving market conditions. Those conditions seem to be coalescing in 2013, which should make for a more active IPO market."
However, while many expect 2013 to be more active than the previous year, there appears to be no single hotly-anticipated IPO. When surveyed for 2012, 93 percent of respondents claimed Facebook was the most eagerly anticipated IPO; this year, 86 percent were unsure as to what will be the biggest IPO story of 2013.
Those companies seeking to make their appearance on the market with an initial public offering may need to work with their lenders and banking institutions in order to determine the growth capital and banking solutions they need in order to remain profitable and have the financial options necessary to remain successful before launching a plan for an IPO.
Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.