The Flash has been closely following the increasing tendency of startups to conduct so-called “private IPOs” – the tactic of remaining private (i.e., foregoing an initial public offering) and instead raising money through large, late-stage growth equity rounds. Simultaneous with private IPOs is the growing prevalence of “unicorns” – startup companies that have valuations of more than $100 billion.
On the horizon of these parallel trends looms the Hart-Scott-Rodino (H-S-R) Act, which can require that both the investor and the company make filings to report the acquisition of a minority shareholding.
H-S-R can be complex and confusing – and costly for companies that lack awareness about its related requirements. To help founders and other startups considering a private IPO, Goodwin Procter partners Christopher Holding and Andrea Murino, along with J. Todd Hahn and Kirby Lewis (both counsel), recently drafted a Client Alert examining this issue. Titled “Private IPOs and Unicorns May Trigger More H-S-R Act Filings,” this Goodwin Procter speed read provides a good overview of this important topic.
Read the full Client Alert here.