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I would say in 80% of the cases, the reason for going public is that the original investors, who have made an investment that is very risky from their personal perspective, want to "cash out".

By "original investors", do you mean venture capitalists?

"maximizing shareholder value" seems to be a bogus propaganda argument for "maximizing the value of my own stock options".


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by Migeru (migeru at eurotrib dot com) on Sun Oct 23rd, 2005 at 06:31:04 AM EST
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original investors would include a broad group of people: venture capitalists would be one.  Private investors another.  the time and money of the entrepreneur would be another.  in most cases I'm involved with, the entrepreneur has his family and friends involved.  then if the company looks good, and meets milestones, other investors will get in the following investment rounds, and might include other financial investors, like banks and funds focused on "mezanine" type financing.  the previousl list is not exclusive, there might be others--pension funds, for example.
by wchurchill on Sun Oct 23rd, 2005 at 06:37:46 AM EST
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