Mike Gould: December 16, 2015

Mike-GouldMIKE GOULD

U.S. Public Offerings Leader at PwC | U.S. IPO Services Leader

Tips on How Investors Can Adapt to the New Level of IPO Market Volatility

When it comes to the current Initial Public Offerings (IPO) market, investors are in the driver’s seat.  After a terrific 2014, IPO activity slowed this year, falling below the strong pace set in both 2014 and 2013.  In fact, 2015 saw a decline in filings, weaker pricing and softer post-IPO performance, putting the year more in line with historical trends and pressuring investors’ to take a more cautious approach to new issuers.

A hot Mergers and Acquisitions (M&A) market is driving fierce competition with IPOs.  The record level of Mergers and Acquisitions are providing healthier valuations for sellers of prime acquisition targets when compared to the lower IPO pricings and lower valuations they are now getting in the public market.  As a result, we will see more companies embark on a dual track process – preparing for an IPO while also analyzing potential buyers.  This will put M&A back in line as a prime exit strategy for private equity and venture capital versus the surging IPO market seen in the previous two years.  The recent announcement of Petco being sold for $4.7 billion instead of going public is a clear indication of that shift.

Based on historical trends, the IPO market is still in great shape.  While we’ve seen a significant slowdown from the surging levels of 2014 and 2013, we expect the market to remain relatively healthy and in line with what we’ve seen this year even though M&A, debt raises and later stage financing will continue to cut into what was a dominate IPO market for liquidity.

On Wednesday, December 16th, Mike Gould, U.S. Public Offerings Leader at PwC is available to discuss the financial trends of the past year and what to expect in 2016.  He can also talk about hot sectors for activity, how market volatility was a key factor in slowing down the IPO market and give tips on how investors can adapt and get more comfortable with the new normal level of volatility.

MORE ABOUT MIKE GOULD: 

Mike Gould is a Capital Markets partner at PwC with twenty five years of experience providing accounting, financial reporting and advisory services, while based in the United States, South Korea, and the United Kingdom.  Mike leads PwC’s Public Offerings services practice in the US, where he helps his clients access the debt and equity capital markets in the US, by providing them with technical and project management advice on accounting and financial reporting issues associated with the SEC registration process, Initial Public Offerings (“IPO’s”), 144a debt and equity offerings, divestitures and carve-outs, and conversions to and from IFRS and US GAAP.

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