The IPO Outlook
Ask investment bankers the outlook for the IPO market for the rest of 2014, and you’re likely to get two very different views: 38% say IPO activity will increase and 35% saying it’ll be flat. And then there are the 27% who say IPOs will fall (or were too busy burying cash in their back yard to answer). Average it all out and IPOs will increase 1% during the second half of the year, according to a recent study by Chicago-based accounting and consulting firm, BDO USA. Even still, DC-based BDO USA assurance partner Steve Ritchey says 2014 has been one of the best IPO years.
His prediction is that the second half of 2014 will be even more robust than the first. Leading the charge are healthcare companies, followed closely by tech. So far this year, there’s been 35 tech IPOs. The pace is inspired by companies like Opower and 2U going public earlier this year, making the IPO exit strategy still hot for investors and entrepreneurs. Plus the stocks have done well despite a dip a few months ago. And sure the actual IPO value is smaller but the aggregate dollar value is up, says Steve.
