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One Response to “How does an IPO failing to close, cause a company to incur huge amounts of debt?”
The whole idea of going public is to issue equity which the company can use for expansion, operations, or investment. When this fails to occur the company will have to obtain funds in another manner. The most likely other source is bank debt.
November 30th, 2009 at 2:02 pm
The whole idea of going public is to issue equity which the company can use for expansion, operations, or investment. When this fails to occur the company will have to obtain funds in another manner. The most likely other source is bank debt.