Will the presidential election impact your IPO timing?
Historically, in all markets there is a race to price an IPO prior to election day, a slight lull in November post-election and generally a pickup in December (depending on the results and confidence in the new Administration).
As the election approaches, executives leading IPO hopefuls may be wondering how the outcome could affect their plans for going public. While historical data suggests that elections typically don't materially alter IPO activity, certain sectors like Healthcare may experience fluctuations.
In 2024, we anticipate unique economic, political, and technological factors that could influence IPO sentiment more than in previous years. These include economic conditions, interest rate changes, consumer behavior shifts, political appointments, and the impact of AI technology to name a few.
Despite these complexities, our advice to aspiring public companies remains consistent: focus on fundamentals, long-term capital plans, sales and earnings growth and or accelerated development and execution, understanding investor demands, and ensuring financial statement integrity. Collaboration with knowledgeable experts is key to navigating these considerations effectively.
A more interesting question is how will the presidential election impact IPO’s in the microcap space ($300mm market cap and below)? Stay tuned for our data and analysis of the 2020 election cycle in the coming weeks.
In the interim, check out this great article written PWC on the election and IPO timing.
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