A Prerequisite: Pre-IPO Private Placements

17 Nov 2015 08:30 a.m. - 09:30 a.m.

Morrison & Foerster LLP
250 West 55th Street
New York, NY 10019
Trevor Starer
(212) 336-4310

Listen to Presentation

Many successful privately held companies considering their liquidity opportunities or eyeing an IPO now turn to a pre-IPO private placement.  Especially in certain industry sectors, a pre-IPO private placement that includes well-respected institutional investors has become a prerequisite to an IPO.  We will discuss the evolution of this trend and discuss the structuring and other considerations for issuers contemplating such a financing.  We will address:

  • Timing and process;
  • Diligence, projections and other information sharing;
  • “Cleaning up” the cap table and providing liquidity to existing securityholders through a secondary component;
  • Terms of the security, such as liquidation preference;
  • IPO and acquisition protection;
  • Governance issues;
  • Valuation issues;
  • The placement agent’s role; and
  • Planning for the IPO in your negotiations.




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