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Executing a Successful Liquidity Event – Preparing to Capitalize on an Improved Market

The liquidity markets are far more active than even just a year ago. While the challenges in executing the Facebook initial public offering have dulled the IPO market, private equity and strategic buyers are vigorously pursuing growth vehicles. Reasons for the increased availability of capital include:a return of the debt markets, potential changes to capitalgains tax rules, and the need for private equity to put to workcapital dormant during the recession.

 

As a result, well-positioned companies have greater access tothe equity markets as a means to drive growth than they havehad since 2006. For most entrepreneurs, however, the liquidityprocess remains confusing. In 2011, J.H. Cohn’s first forum titled “Position Your Company for a Liquidity Event” helpedmanagement determine if a liquidity event was a good option for them and to stress the importance of leadershipand proper planning as the keys to liquidity event success...

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