These questions are from textbook - Venture Capital, Private Equity, and the Financing of Entrepreneurship

Chapter 7

1. Exits are ultimately how private equity firms realize returns on their investments. Describe the various ways for a private equity firm to exit an investment.

2. What are some of the key considerations in determining whether to take a company public?

3. What are some of the possible explanations for why acquisitions account for a greater percentage of exits than IPOs?

4. What are some of the characteristics of a private company that may increase the likelihood of an IPO?

5. What are some of the characteristics of a private company that may prevent it from going public?

6. Why might the pursuit of an IPO elicit higher interest and/or offers from strategic acquirers?

7. What are some of the key advantages of being a public company? What are the disadvantages?

8. Why would a public company prefer institutional holders to comprise a large portion of their investor base? Who is responsible for attracting these investors? 9. Explain the phenomenon of underpricing as it relates to IPOs.

10. What is a Green Shoe and why does it exist?

11. What is a possible explanation for why a VC-backed company outperforms the market for several years after its IPO?

12. What purpose does corporate VC serve? What are the potential advantages?