Chris Manderson Quoted on IPO Comeback
Chris Manderson, Partner and Co-Chair of ECJ’s Business, Corporate and Tax department was featured in an April 2023 special report of the Los Angeles Business Journal’s Banking & Finance Quarterly titled, IPO Comeback Delayed.
The article discusses the recent events in the banking industry and how the collapse of Silicon Valley Bank and Credit Suisse may impact the market for IPOs. According to Chris, private equity and venture capital clients have recently been concerned with the health of the commercial banking market. “Debt, in general, has become a lot more expensive and underwriting standards have tightened" said Chris. Investors are less likely to take risks.
The demand for IPOs return when the markets become more predictable and “when people feel that the markets are on a growth trend, or at least stabilizing, and capital has a greater appetite for risk”. For many venture capital investors and founders, IPOs are an opportunity to exit but without the IPO they will not get liquidity and companies seeking to use their IPO as a source to provide capital for growth will have to seek alternative funding.
Read the full article for more insights.