Why IPOs are up and M&A is down

Jeffrey Vetter, co-chair of Fenwick & West’s securities and corporate finance group, is quoted in the Daily Journal article “Why IPOs are up and M&A is down.”

The article describes a recent trend by technology companies toward filing to go public rather than seeking a purchaser despite the hurdles involved in filing an IPO.

"A company, say in a high-growth space like big data or cloud computing or software-as-a-service – they see what happens with other comparable companies going public and see the multiples after the IPO, and it's hard to pass that up in favor of a smaller acquisition price," Vetter told the Daily Journal.

He notes that it’s “different and costly to be a public company," and says ""[y]ou have to be sure it's something you want to seriously explore."