CHAPTER 8IPOS AND INDEPENDENT DIRECTORS

IPOs and IPO Alternatives

Key considerations for independent directors:

• It’s easy to lose sight of the fact that directors represent all shareholders, not just the large shareholders.

• Are the directors being brutally realistic about whether the company is ready to be public?

• IPO success stories abound, but the board also needs to focus on worst-case scenarios. It’s critical to be students of recent history, especially with IPO alternatives.

Common mistakes to avoid:

• Being unduly influenced by large shareholders.

• Materially underestimating the distraction and expense of going public and being public.

• Having inadequate backup plans if the IPO is delayed or withdrawn.

• Failing to appreciate the ...

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