There was a significant increase in the number of completed initial public offerings (“IPOs”) in 2017 compared to 2016 and 2015. However, the number of completed IPOs was still down compared to 2014, which saw the highest number of completed IPOs post-financial crisis. Some commentators have attributed the rise in the number of IPOs in 2017 to improving U.S. economic fundamentals and consumer sentiment. However, the trend since the financial crisis of successful companies remaining private longer and continuing to benefit from attractive valuations in private financing rounds without facing the burdens associated with becoming Securities and Exchange Commission (“SEC”)-reporting companies has continued.
In this year’s survey, we consider the characteristics of the emerging growth companies (“EGCs”) that completed IPOs and the corporate governance, compensation and other practices adopted by them. Specifically, we examined the filings of (i) the approximately 853 EGCs (on an aggregated basis) that completed their IPOs in the period from January 1, 2013, through December 31, 2017, and (ii) the 172 EGCs (on a standalone basis) that completed their IPOs during the year ended December 31, 2017. The survey focuses on EGCs that have availed themselves of the provisions of Title I of the Jumpstart Our Business Startups Act (“JOBS Act”). This year is anticipated to be a more active year for IPOs. Our objective is to provide data that will be useful to you in assessing whether your company’s current or proposed corporate governance practices are consistent with EGC market practice.
Read the survey.