Revolution Partners put together a report on "Evaluating an Exit in Today's Capital Markets" Download revolution_partners___exit_presentation.pdf . The report benchmarks recent successful tech IPOs against the recent trends in the M&A market. In the presentation, they also provide commentary on the opportunity for recap transactions as a source of liquidity and the market for late stage financings to finance organic growth or acquisitions.
Their analysis provides interesting data about the tech companies that have recently executed successful IPOs:
- They averaged 8 years from founding to IPO
- They raised $73 million in equity in the private markets prior to IPO
- They had $78 million in trailing annual revenue prior to pricing and grew 190% over the prior year
- 63% of the companies that went public recently, had positive operating income
The report also contains some great M&A stats including data showing that investors are getting M&A multiples that are very similar to IPO returns.
Thanks to Will at RP for sharing this with me.
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