Barron’s – Interested in catching an IPO on the rebound? If you’re not familiar with what’s even implied in that question, you might want to check out a piece written by David Sterman, a veteran writer with StreetAuthority.
As Sterman puts it, many young companies come public with unrealistically high expectations, “as sales growth is often front-loaded before the offering (to make the IPO more attractive) and expenses quickly spike after the deal (as the IPO funds start to get deployed into growth initiatives).”