Economic uncertainty could cause the IPO window to close for months and drain considerable cash, making filing for an IPO risky.
Most tech CEOs know that preparing for an IPO is a major cash and time drain, including selecting legal teams and underwriters, creating a prospectus, running a roadshow, and getting legal and shareholder approvals. Pushing through an IPO during an economic crisis adds substantial risk to the process.
If market conditions make investing in the technology, people and processes to operate like a public company too arduous, it is not a good idea to pursue an IPO.
Discover three basic questions to determine if continuing down the path of an IPO makes sense during uncertain economic conditions.