O’Melveny Worldwide

Top 8 Considerations for Significant Stockholders in an IPO

December 17, 2019

Venture capital, private equity, and other investors in private companies eagerly anticipate a company’s initial public offering, when they collect the returns on their investment. Investors who hold significant equity in a company, however, may have unanticipated obligations, which should be considered well in advance of any initial public offering. These considerations include whether a significant stockholder “controls” the issuer and whether the SEC could deem a significant stockholder an underwriter, thereby triggering certain liabilities, and significant stockholders’ disclosure obligations. O’Melveny has released a primer for significant stockholders that describes these considerations, which you can read here.

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