Economic Optimism Can’t Lift IPOs
Q4 2016 Middle Market Equity Capital Report
Business leaders and investors are generally optimistic about the U.S. economy and their ability to grow and achieve their financial goals. According to responses from a recent survey conducted as
part of CohnReznick’s Annual Liquidity and Capital Formation National Conference, middle market companies and investors are overwhelmingly optimistic in the strength of the U.S. business environment.
100,000
of those surveyed reported that they were “confident” or “very confident” in the business environment, suggesting a strong forecast for growth heading into 2017.
80,000 600
500
60,000
400
40,000
300
200 20,000
Proceeds Raised
2016
2015
2014
2013
2012
2011
0
2010
100
2009
Proceeds Raised ($ Mil)
For U.S. listed companies, 2016 was the worst year for IPOs since 2008 with the fewest proceeds raised from IPOs since 1990.
700
IPO Count
0
IPO Count
But the confidence expressed by middle market executives hasn’t helped lift the spirits of companies who once viewed the IPO as a “next step” in their growth trajectory. And optimism in the economy hasn’t encouraged public investors to clamor for more IPOs.
800
2008
80%
Proceeds Raised and IPO Count
2007
In fact, nearly