When the IPO market gives you a drought, it's time to dig for the hidden oasis.
In the face of a challenging IPO market, Investor Relations (IR) professionals are finding themselves in uncharted territory. But as the saying goes, every cloud has a silver lining. This downturn, as daunting as it may seem, is ripe with opportunities for strategic growth and long-term success.
Let's take a page from Clif Marriott's playbook, who’s a managing director at Goldman Sachs, and see how we can turn this challenge into an opportunity.
● The State of the IPO Market: The IPO market has taken a hit, but it's not all doom and gloom. The market is cyclical, and a bounce back is on the horizon. As Marriot puts it, the party isn't over, it's just on a break.
● The Waiting Game: This downtime is a golden opportunity to build relationships with investors. Use this time to network, engage with potential investors, and build a strong investor base for when the market picks up.
● Running the Business: Stay true to your business model and focus on long-term success. As Marriot advises, don't change your business to fit the market. Change the market to fit your business.
● Alternatives to IPOs: Mergers and acquisitions (M&A) and private placements are viable alternatives to IPOs. These options can be just as effective, if not more so, for growth and expansion.
● The Future of Tech IPOs: The first companies to go public post-drought will likely be lower-risk, profitable, growing companies that are household names. Particularly, AI and software companies, if profitable, could potentially access the public markets right now.
The IPO drought is not permanent. In fact, it's a golden opportunity to build and nurture relationships with investors, prepare for the future, and explore alternative routes to growth.
So, let's adjust our lenses and find the opportunities hidden in this challenge. After all, when life gives you lemons, you don't just make lemonade. You make the best damn lemonade there is.