Resource Center: Liquidity and Capital Formation
Liquidity and capital formation are significant challenges facing owners and operators of middle market companies. Through a combination of national forums, affiliations with leaders in the capital markets, and the development of insightful thought leadership, CohnReznick has created this Liquidity and Capital Formation Resource Center with tools that can be used to learn more about liquidity events and accessing capital.
Heading out of 2014, a continuation of record-breaking IPO activity was forecasted for 2015. However, Q1 2015 fell far short of expectations and as a result raises more questions than there are definitivie answers to explain the 46% drop in IP activity when compared to Q1 2014. The decrease in IP activity was particularly felt among middle market companies
Middle Market Equity Capital Report - 2014 Analysis
CohnReznick’s Middle Market Equity Capital Report – 2014 Analysis: Progress for Middle Market IPOs, the fourth in a series of quarterly reports, examines the metrics and propellers of IPO activity. CohnReznick analyses how these factors are converging to influence the overall middle market business sector and the impact of JOBS Act regulations on the formation of equity capital.
2015 Middle Market Private Equity Outlook
An abundant supply of capital and competition to identify and close quality investments frames CohnReznick’s “2015 Middle Market Private Equity Outlook.” While the industry is poised for the challenges that accompany a competitive deal-making environment and heightened regulation, the outlook for this year exudes expansion.
Press Release: 2014 Middle Market U.S. IPO Activity Increases Over 2013 But Continues To Lag Behind Historic Levels
Despite year over year gains and historic returns, middle market initial public offering (IPO) activity in 2014 remained behind the level necessary to stimulate large scale economic growth, according to new research released today by CohnReznick. In terms of the broader market, the 2014 calendar year was the best year for IPOs since 2000, with 278 IPOs generating more than $90 billion in proceeds. However, IPO activity among the middle market was much more modest, with just 237 IPOs raising nearly $28 billion in 2014, compared with 190 IPOs raising more than $31 billion in 2013. This represents a 24% increase in the number of IPOs but an 11.4 % decrease in proceeds year over year. CohnReznick defines the middle market as companies with market cap between $10 million and $2 billion, excluding funds and SPACs.
CohnReznick Releases Middle Market Equity Capital Report for Q3 2014
In the third quarter of 2014, indicators are pointing in the right direction for middle market IPO growth. Q3 2014 results reveal that the middle market capital formation engine is, after more than a decade of decline, revving faster. The U.S. is heading for its highest Initial Public Offering (IPO) activity since 2000, according to new research contained in The CohnReznick Middle Market Equity Capital Report. The Q3 Report is the third in a series of quarterly reports from CohnReznick examining the state of the IPO market and its impact on middle-market businesses.
Report: 2014 U.S. IPO Activity At Highest Level Since 2000
NEW YORK (October 2, 2014) – The United States is heading for its highest Initial Public Offering (IPO) activity since 2000, according to new research released today by CohnReznick LLP, a top ten accounting, tax, and advisory firm with a practice dedicated to helping middle-market companies with liquidity events and capital formation.
The report indicates that 2014 IPO activity is on track to surpass 2013 figures, with 230 IPOs taking place during the first three quarters of the year, compared with 180 for the same time period in 2013. CohnReznick anticipates IPO activity for the year will exceed 315 deals, marking the highest level since 2000. If the strong market activity keeps pace through the end of the year, new IPOs can be credited with injecting an estimated 250,000 new jobs into the U.S. economy.
CohnReznick Releases Middle Market Pulse: Liquidity and Capital Formation Survey Results
CohnReznick’s National Liquidity and Capital Formation Advisory Group surveyed a cross section of middle market CEOs, CFOs, and other C-suite business executives across the United States regarding liquidity and capital formation and past, current, and future business indicators. Three hundred responses were received and compiled in a proprietary research report. Our research methodology also included in-depth personal interviews with a cross-industry set of executives to explore their underlying thinking, drivers, and attitudes regarding liquidity and capital formation.
The results show an optimistic outlook on growth, access to capital, and liquidity among companies across many industries.
Press Release: CohnReznick Middle-Market Liquidity and Capital Formation Survey (Summer 2014)
According to new research commissioned by CohnReznick for its Middle-Market Pulse: Liquidity and Capital Formation Survey (full report to be released at the end of the month), executives at middle-market companies across the United States are confident about their ability to raise capital. The survey found strong potential transaction activity over the next six months and showed executives’ confidence in securing the necessary capital to complete transactions before the end of 2014. However, when asked about the JOBS Act, which many have credited as a driving force behind the economic recovery and a robust IPO recovery in the U.S., only one-third of executives at smaller middle-market companies claimed to be familiar with the key elements of the legislation that could benefit their organization.
Perspectives on Middle-Market Equity Capital: Moving the Capital Markets Ecosystem Beyond One-Size-Fits-All
Despite their recognized value as economic engines, the number of Initial Public Offerings (IPOs) in the United States, although improving over the first two quarters of 2014, is far from the number required to accelerate growth in the middle market. The U.S. is on track to do only 280 corporate IPOs in 2014, less than one third of the total number that researchers estimate should be completed, based on GDP growth, to support the broader economy.
Our latest report, Perspectives on Middle Market Capital Formation, analyzes the “IPO Gap” and its impact on middle-market companies and the broader economy. Data suggests that this “IPO Gap”, if not corrected, could cost the U.S. almost two million potential jobs over the next five years.
Despite their recognized value as economic engines, the number of Initial Public Offerings (IPOs) in the United States, although improving over the first two quarters of 2014, is far from the number required to accelerate growth in the middle market, according to new research released today and commissioned by CohnReznick LLP, a top ten accounting, tax, and advisory firm dedicated to helping middle-market companies with liquidity events and capital formation. The U.S. is on track to do only 280 corporate IPOs in 2014, less than one third of the total number that researchers estimate should be completed, based on GDP growth, to support the broader economy.
Private Equity Outlook
An abundant supply of capital and competition to identify and close quality investments frames CohnReznick's "2015 Middle Market Private Equity Outlook." While the industry is poised for the challenges that accompany a competitive deal-making environment and heightened regulation, the outlook for this year exudes expansion.
The 2015 Middle Market Private Equity Outlook underscores strategies that middle market private equity firms can adopt in order to best compete for deals and optimize the value of their portfolio. It also identifies and analyzes the activity drivers, opportunities, challenges, and key issues that will make a difference to executives in the following key industries: construction, hospitality, manufacturing and wholesale distribution, technlogy, retail and consumer products, and healthcare.
Liquidity and Capital Raising National Forums
Joined by M&A professionals, capital markets experts, and middle market c-suite business executives, CohnReznick presents its Liquidity and Capital Raising Forum scheduled to be held in the Fall of 2015 in New York City. This interactive event will bring investors, financiers, and business leaders and entrepreneurs together to discuss relevant and timely topics.
Videos from our 2013 events are provided below.
Liquidity and Capital Formation Webinars
CohnReznick is pleased to host a series of webinars that will provide insight and observations into the challenges and opportunities associated with liquidity and capital formation. Designed for middle market decision makers, these interactive discussions are intended to provide participants with information and tools to make well thought business, personal, and financial decisions.
Access our pre-recorded webinars that can be viewed at any time:
- Accessing the IPO On-Ramp (Jan. 2015)
- Selling to Corporate or Strategic Acquirers (Dec. 2014)
- Webinar: Preparing Your Business for Sale (2014)
- Webinar: Latest Trends in Capital Formation (2014)
- Webinar: What is Your Business Worth? (2014)
- 7/1/2015 U.S. IPO Activity Continues to Lag With a 20% Drop in Total Number of Q2 IPOs Year Over Year
- 5/14/15 Crowdfunding Technology Takes the Lion Share of Capital Commitments
- 3/27/15 SEC Boosts Access to Capital for Small Companies, Issues Regulation A+ Under Jobs Act
- 3/23/15 Private Equity and Venture Capital Newsletter - Spring 2015
- 2/12/15 Technology Mergers and Acquisitions: How Decision-Makers Should Navigate Today's Market
- 1/7/15 Private Equity and Venture Capital - Winter 2015
- 9/18/14 Private Equity and Venture Capital Newsletter - Fall 2014
- 7/15/14 An Investor's Best Friend in an Active 2014 Capital Market: Robust Internal Controls
- 7/1/14 A Profitable Exit? Think Sustainable, Long Term Growth
- 6/9/15 Private Equity and Venture Capital Newsletter - Summer 2014
- 3/27/14 New Rules Could Slow Lending/PE Deals and Affect Restaurant Companies' Access to Capital
- 3/17/14 Private Equity Trends and Implications on the Manufacturing and Wholesale Distribution Industry
- 3/14/14 New Lending Rules Could Slow Private Equity Deals
- 1/16/14 Contemplating a Liquidity Event? How Information Technology Due Diligence Can Make You Stronger
- 12/5/13 Liquidity: Private Equity Embraces Well-Positioned Restaurant Concepts
- 12/3/13 Thinking of Selling? Six Actions to Prepare for a Liquidity Event
- 11/25/13 Technology: Early-Stage Company Financing Options - With Alternative Sources Offering Hidden Treasure
- 10/21/13 Big Data Can Grow Private Equity and Venture Capital
- 9/27/13 Knowing Which Ones to Watch: Private Equity Investment in Certain Retail Health Clinics