why do firms go public? - Marriott School

Panel E. Never Tried
Very
Not Important
Important
How important were/are the following motivations for conducting an IPO 1 2 3 4 5 Mean
i. To broaden the base of ownership 15% 9% 13% 43% 20% 3.43
a. To minimize our cost of capital 7% 15% 26% 39% 13% 3.37
d. To create public shares for use in future acquisitions 4% 28% 28% 26% 13% 3.15
f. To allow venture capitalists (VCs) to cash-out 11% 26% 24% 37% 2% 2.93
c. Our company has run out of private equity 24% 20% 20% 30% 7% 2.76
j. To attract analysts' attention 20% 20% 37% 22% 2% 2.67
g. To enhance the reputation of our company 35% 24% 17% 17% 7% 2.37
h. To establish a market price/value for our firm 28% 30% 26% 9% 7% 2.35
e. To allow one or more principals to diversify personal holdings 59% 7% 7% 15% 13% 2.17
b. Debt is becoming too expensive 33% 33% 24% 9% 2% 2.15
Panel F. No VC-Backing
Very
Not Important
Important
How important were/are the following motivations for conducting an IPO 1 2 3 4 5 Mean
d. To create public shares for use in future acquisitions 12% 12% 16% 35% 24% 3.47
h. To establish a market price/value for our firm 10% 10% 29% 27% 24% 3.45
a. To minimize our cost of capital 21% 15% 13% 23% 28% 3.21
g. To enhance the reputation of our company 17% 15% 21% 27% 21% 3.21
i. To broaden the base of ownership 27% 8% 20% 31% 14% 2.98
e. To allow one or more principals to diversify personal holdings 24% 24% 12% 20% 18% 2.84
j. To attract analysts' attention 30% 19% 17% 23% 11% 2.66
b. Debt is becoming too expensive 33% 25% 19% 15% 8% 2.40
c. Our company has run out of private equity 38% 21% 17% 11% 13% 2.38
f. To allow venture capitalists (VCs) to cash-out 60% 9% 17% 11% 4% 1.91
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