1 21 st Century Version of 4 Horsemen Required Would you consider a boutique Ibank to be the lead book runner for going public on a US stock exchange 36 Yes 32 No 32 Not Sure ID: 219667
Download Presentation The PPT/PDF document "DCM • Proprietary and Confidential" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
DCM • Proprietary and Confidential
1
21st Century Version of “4 Horsemen” Required
Would you consider a boutique I-bank to be the lead book runner for going public on a U.S. stock exchange?
36%
Yes
32%
No
32%Not Sure
* Source: DCM
Analysis /Survey
of Venture-Backed Companies, 2009 – Participants
(
N) = 108Slide2
Emerging Company IPOs on International Exchanges: Additional New Liquidity Sources
Global Venture-Backed
IPOs*
* Sources
: Thomson Reuters, Venture Source, Zero2IPO, Venture Intelligence
**
Includes VC- and PE-backed IPOs
Top 3 Compliance Challenges to Going Public
On U.S. Stock Exchanges
# of Responses Answered as a Top 3 Issue
(Participants =108)
Sarbanes-Oxley
Corporate Governance
Regulation Fair Disclosure
(Reg FD)
Listing Requirements of U.S. Stock Exchanges
Other
Source: DCM Analysis/Survey of Venture-Backed Companies, 2009
**
DCM • Proprietary and Confidential
2Slide3
Exit Route Preference
and Expectation
(n=108)
Top 3 Barriers to Going Public
# of Responses Answered as a Top 3 Issue
(Participants = 108)
M&A
IPO
Compliance Requirements
(Sarbanes-Oxley, Audit, Governance)
Increased Volatility in the Public Markets
M&A Better Alternative
(Faster Process, More Liquidity)
Investment-Banking Related Issues (Analyst Coverage, Requires High Rev Threshold)
Transaction Costs of Going Public (Legal,
Banker Fees, Non-Compliance Related Costs)
Higher Perceived Litigation Risk from U.S. Investor Base
Other
Source: DCM Analysis/Survey of Venture-Backed Companies, 2009
Current Regulation Has a Major Impact on How
Emerging Companies Consider Their Exit Route
Barriers to Going Public on U.S. Stock
Exchanges
DCM • Proprietary and Confidential
3Slide4
Top 3 Compliance Challenges to Going Public on
U.S. Stock Exchanges
# of Responses Answered as a Top 3 Issue
(Participants = 108)
Sarbanes-Oxley
Corporate Governance
Regulation Fair Disclosure
(Reg FD)
Listing Requirements of U.S. Stock Exchanges
Other
Source: DCM
Analysis/Survey
of Venture-Backed Companies, 2009
Emerging Companies Need Right-Sized
Compliance
Requirements to Thrive
102
80
74
62
6
Cost of Compliance Is Prohibitive for
Small Companies
DCM • Proprietary and Confidential
4