Ernst & Young LLP is the #1 firm in taking companies public in the Western U.S. and across the country
San Jose, 20 February 2014
In 2013, the US IPO market hit levels not seen since 2004, and Ernst & Young LLP led the way in the Western United States, advising 42 percent of the companies that went public. These companies raised a total of $9.2 billion. There were 52 initial public offerings in the Western United States, of which EY was the auditor for 22.
- Audited 42 percent of the IPOs in the Western United States in 2013
- Audited nearly half of all venture capital backed IPOs and more than half of all private equity backed IPOs in the West
- EY is the dominant audit firm for life sciences, real estate and technology IPOs in the West
“An IPO marks a turning point in the life of a company and we’re thrilled to have had the opportunity to be the auditor of many of the West’s leading companies that entered the public markets last year,” said Doug Regnier, EY’s West Region IPO Leader.
In addition to being the overall professional services firm of choice for companies going public, Ernst & Young LLP was the auditor of 80 percent of the life sciences IPOs, 50 percent of media & entertainment IPOs, 50 percent of real estate IPOs and 31 percent of technology IPOs in 2013.
“Investors recognized the opportunity to catalyze growth – in jobs, corporate profits and their own returns – with the variety of companies that went public in 2013 and that are in the IPO pipeline going into 2014,” said Joe Muscat, EY’s West Region Strategic Growth Markets Leader. “In the current IPO market, two qualities are being rewarded: growth and the entrepreneurial spirit to take on significant market opportunities.”
IPOs of venture capital backed companies grew at a faster pace than any other sector during 2013. Ernst & Young LLP provided audit services to 48 percent or 17 of 35 VC-backed companies that went public in the West. These companies raised $6.1 billion in their IPOs and will raise significantly more in follow on and other offerings. In the United States, EY member firms audited 47 percent of VC-backed IPOs and provided counsel to many others.
Private equity (PE) activity provided a key source of IPO-related exits last year. For comparison purposes, in 2007, the peak year for PE-backed IPOs, there were 94 deals with proceeds of $20.3 billion. By contrast, in 2013, of the 226 IPOs, 94 were PE-backed deals that raised $33.5 billion, an increase of $13.2 billion. EY firms provided audit services to 37 percent of those and advised many more. In the West, Ernst & Young LLP provided audit services to 59 percent or 10 out of 17 PE-backed IPOs.
“We’ve been committed to working with the premier high-growth companies across the West for more than 50 years. We bring a level of experience to the IPO transformation that is unmatched by any other professional services firm. In addition to serving as auditor for 42 percent of the IPOs in the Western U.S. last year, we also provided tax, advisory and internal control services to many other companies that completed IPOs in 2013,” said Regnier. “We are committed to building a better working world by advising executives, investors and boards of companies on how to ready their businesses for the capital markets and reach their full potential.”
Ernst & Young LLP will host a webcast on March 6 at 11 a.m. Eastern/8 a.m. Pacific on “Considerations for a US IPO listing.” Participants will hear members of the board and the C-suite of recent IPOs, as well as their advisors, discuss setting the IPO agenda. Register for the one-hour webcast here.
About EY's IPO offerings
EY firms are leaders in helping to take companies public worldwide. With decades of experience our global network is dedicated to serving market leaders and helping businesses evaluate the pros and cons of an IPO. We demystify the process by offering IPO readiness assessments, IPO preparation, project management and execution services, all of which help prepare you for life in the public spotlight. Our EY Global IPO Center of Excellence is a virtual hub which provides access to our IPO knowledge, tools, thought leadership and contacts from around the world in one easy-to-use source.
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.