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Private Matters

If you're in need of capital this year, one thing is clear: IPOs will likely get you nowhere.

This story appears in the January 1999 issue of Entrepreneur. Subscribe »

The sound I heard at the end of 1998 was a grinding halt," says Jeffery Adduci, president of the Regional Investment Bankers Association. Announcing what is probably bad but predictable news for entrepreneurs, Adduci is referring to the market for initial public offerings (IPOs).

Investment bankers that handle IPOs were primarily spooked by two events, according to Adduci. The first was the volatility in the stock markets. "Investment bankers can't underwrite IPOs in an environment where the market may drop 200 points the day before or the day after they come out," Adduci says.

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