The State of the IPO Market 2023

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.