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M&As, strategic sales make up for sluggish IPO market to aid investor exits

Exits through strategic sales/M&As created 69% of liquidity events

IPO

The Initial Public Offer (IPO) market, mirroring the broader secondary market, has been sluggish this year. However, that has not hurt investors looking for exits, as other modes of doing so have come into play. Exits through M&As or strategic sale accounted for 69 per cent of all liquidity events this year.  This was followed by exits through open markets (13.2 per cent) and secondary sale (12 per cent), reveals an analysis of liquidity events in 2018 so far by data firm VCCEdge. This shows that, unlike earlier, investors are less dependent on IPOs for ...