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Groupon IPO

Okay, my last post was on Groupon so it may seem that I have a Groupon theme. Yes, I was thinking about Groupon when I saw an article about its IPO (initial public offering). As with my mention of LinkedIn’s IPO, I think it’s important to mention Groupon’s. I know most small and medium businesses never make it to the IPO phase. But you can see that the IPO market is warming up again. Look at MySpace. It was purchased by NewsCorp in an environment where IPOs were difficult to do. (This means that it was difficult to obtain the desired valuation with a full subscription.) Ditto for YouTube. Those were both Internet and media darlings but the road to cashing out AND obtaining expansion capital for them was to be purchased by a large, strategic buyer.

First the IPO market opens up for the tech darlings, then it opens up for a lot of other industries. And Nasdaq (and the NYSE) are experiencing heightened competition from a few European exchanges. So I expect to see more IPOs over the next two years.

My final suggestion: If you have at least $10 million in revenue and a decent EBITDA and are looking to cash out and monetize some of your ownership in your current business, take another look at IPOs. No, most likely you wouldn’t want to go public on Nasdaq but there are other, related viable options. One option is to use PIPEs (public investments in private equities). That’s a discussion for another day.

 

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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