Initial Public Offerings (IPO) are transformative events for any company, unlocking access to capital and boosting brand value. The IPO market, however, is unpredictable. IPO windows fluctuate, opening and closing at any moment in reaction to external events such as elections, military conflicts, and interest rates.
The market completed a window cycle of high IPO activity through late 2021, with more than 800 U.S.-based companies going public through a traditional IPO or Special Purpose Acquisition Company (SPAC) merger since 2020. While the markets have been relatively quiet in 2022 and 2023, if history has taught us anything, it is that the IPO market is cyclical and we anticipate its return eventually.
Atlanta’s startup scene is buzzing with innovation making it a prime location for companies eyeing the public market. Metro Atlanta has experienced a remarkable increase in new companies over the past year, surpassing growth rates in any other U.S. city.2 The region’s reputation as a dynamic hub for technological innovation further propels this momentum, attracting startups and aspiring young professionals seeking careers in the industry.
Atlanta-based startups seeking to go public will likely need to be strategic about their approach, especially regarding timing and readiness. Without good readiness planning, their IPO journey can be chaotic, resulting in a potential missed opportunity.
But how can Atlanta-area companies know when it’s an ideal time to pursue an IPO? And when should they start getting their legal, financial, and regulatory ducks in a row? Because the current economic market is more volatile than in recent past, many companies are delaying going public and shifting their focus toward profitability and growth. While it’s uncertain when the next IPO window will open, it could happen quicker than many think.
Readiness lessons learned
To better understand IPO readiness requirements, Deloitte surveyed CEOs and CFOs who took…
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