medium · Investment Banking
A technology company with $900 million in annual revenue chooses a Direct Listing instead of a traditional IPO.
Which of the following is a primary risk or trade-off associated with this decision?
- Total underwriter fees are higher due to complexity
- Insiders are forced into a 360-day lock-up
- Lack of price stabilization and 'Greenshoe' support
- The company cannot raise any new capital
Sign up free to see the explanation and track your rank →
More Investment Banking practice
- What is the Multiple on Invested Capital (MOIC)?
- What is the control premium?
- Which valuation methodology would likely produce the 'floor' valuation for a mature indust
- Which of the following changes, held in isolation, would most likely achieve this?
- What is the Multiple on Invested Capital (MOIC)?
- If a company has an Unlevered Free Cash Flow (UFCF) of $500 million in Year 5, a WACC of 1
- What is the 3-year Compound Annual Growth Rate (CAGR)?
- If a company's Net Debt is negative, what is the relationship between its Equity Value and