IPOs create value, really

Companies that undertake an IPO grow faster and outperform their already listed rivals, according to a recent study, which is good news for stressed ECM bankers trying to persuade reluctant companies to come to market.
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IPOs create value, just ask Mark Zuckerberg
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<div style="text-align: left;"> IPOs create value, just ask Mark Zuckerberg </div>

Cass Business School and Credit Suisse released a study last week that looked at the performance of companies after conducting an initial public offering. The study included 1,500 companies that listed their shares in the UK between 1995 and 2008, and analysed their behaviour during the 1,000 days after listing.

On the face of it, the findings are blindingly obvious, but they do point to a bigger picture in which a public market listing has huge benefits if used well, despite the troubles in the IPO market at the moment.

The key finding was that many companies used their IPO as a launch pad for other deals...

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