As most of us pretty much realize, this would be a poor time to take you business public. While there is little chance for a sale to a private equity group, as they are undergoing a major restructuring of their business model, the effort to put your company through an IPO may result in a very disappointing outcome. A recent article in Inc.com pretty much verifies that the IPO market, for now, is on the wane.
Few groups will underwrite an IPO, and finding investors in this economic downturn is difficult to say the least. If there is any movement at all this space it is with larger, better established companies. The smaller, VC back companies can forget about it. Couple all this with the reality that credit is hard to obtain, and small wonder the article advises you sit tight and build your business internally.
It is good advice. Meanwhile, with you own business, before you get involved with fledgling operations or even established companies than may be undergoing financial stress in this economy, it is prudent that you conduct business research, including international business credit reports as well as any series of background checks on the key executives of any business. Simply put, if their credit rating is poor or the company or its executives have liens or judgments against them, or are involved in any serious litigation, it’s best to stay away.
Winning an account that is unable to pay your invoices is no win at all.
