The Benefits Of A "Supercharged IPO"

Supercharged IPO is a new and controversial financial transaction that has dramatically increased in popularity over the past few years as companies try to extract as much value as possible from the IPO process. [buffett] A new white paper from Gladriel Shobe, Associate Professor, Brigham Young University Law School looks at the benefits of these transactions and considered whether the SEC should continue to allow such a process. The supercharged IPO The traditional IPO structure is comparatively inefficient from a tax perspective. That said, it can be “supercharged” to increases the basis of the assets of the newly public company thus increasing a…