Pros and Cons of IPOs, Acquisitions, SPACs, and LBOs for Startup Exits

 

Executives reviewing IPO, acquisition, SPAC, and LBO options on digital dashboards.

The main exit options for startups—IPOs, acquisitions, SPACs, and LBOs—each carry distinct benefits and risks. Your best fit depends on growth stage, capital needs, and risk appetite.

Exit planning defines how you and your investors ultimately capture value. This article breaks down the pros and cons of IPOs, acquisitions, SPACs, and leveraged buyouts (LBOs), helping you assess which option aligns best with your company’s maturity, financial profile, and strategic vision.

What are the advantages and disadvantages of an IPO?

An IPO provides access to public capital markets, allowing you to raise significant funding for expansion, repay debt, or provide liquidity for early investors. It also enhances brand visibility and credibility, making it easier to attract talent and partners. 

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