What are the IPO advantages and disadvantages that CEOs should consider?
During the IPO, there’s the chance that the stock held by the executive will increase in value, and holding the shares over time creates a residual incentive that engenders both a sense of accomplishment and a financial reward for the CEO. This can be especially gratifying for founders who have nurtured the company from conception. However, another consideration is that regulations usually only permit executives to sell their stock over the course of time, and there’s no guarantee that the shares will appreciate. There’s greater access to public equity markets after an IPO, so companies that require additional funding to reach the next level of development may find more readily available financial resources after going public. What are the acquisition advantages and disadvantages? Unlike the IPO, where executives may usually only sell their stock over time, depending upon how it’s structured, an acquisition event can offer immediate cash gratification for investors and executives. Also
