Maximizing Liquidity and Enterprise Value: Strategies for Successful Liquidity Events
For the leaders of privately owned companies, the decision to conduct a liquidity event can be at the same time exciting and overwhelming. The prospect of achieving capital and liquidity may be, for the uninitiated, mired with feelings of anxiety and confusion at the prospect of the enhanced corporate responsibilities associated with new financing options. After all, in exchange for enhanced funding, executives are frequently accountable to a new set of shareholders, an independent board of directors, and a myriad of Federal and state agencies. They have a new found need to adopt formal corporate governance practices and provide additional shareholders with access to, among other key financial factors, compensation agreements and business plans. Further, some professional viewpoints cite certain markets as being concept-saturated, with little room for growth and capital strangulation.