We examine factors that influence the choice between an initial public offering (IPO) and a takeover by a public acquirer. Our results show that the industry concentration, high-tech industry affiliation, current cost of debt, relative "hotness" of the IPO market, firm size, and insider...

Private firm owners interested in gaining increased access to public capital, increasing their liquidity, and/or changing the control of their firms, face a fundamental choice between an initial public offering (IPO) or a takeover by a public acquirer. Using a sample of over 9,500 U.S. privately...