As equity markets regain momentum, many privately held companies including gaming firms are re-examining a long-standing strategic question: whether a public listing is the right next step. An initial public offering (IPO) can unlock significant capital, enhance a company’s profile, and create liquidity for early investors and employees. At the same time, it imposes substantial costs, regulatory obligations, and pressures that permanently alter how a business operates. The decision, advisers consistently note, is less about market timing and more about organizational readiness.
The backdrop for this deliberation has improved considerably. According to industry analyses, the United States IPO market recorded 347 listings in 2025, including SPACs – a 54% increase over the 225 IPOs recorded in 2024. Nasdaq captured approximately 81% of U.S. listings that year, and proceeds raised on IPO days reached an estimated $25 billion across new listings. Private equity-backed listings also accelerated, with the number of such deals more than doubling and proceeds rising by 68%, according to EY’s Global IPO Trends report for the third quarter of 2025.
These figures indicate renewed appetite for new issues, but market conditions alone do not determine whether a listing serves a company’s long-term interests.
The Case for Going Public
The advantages of a listing fall into several broad categories:
-
Access to capital. A public listing opens a large, ongoing funding pool. Capital raised through an IPO does not require repayment, reducing strain on cash flow, and public companies can return to markets for follow-on offerings or debt issuance at generally more favorable terms.
-
Credibility and visibility. Public status can strengthen a company’s reputation with customers, suppliers, and partners. Increased media coverage and analyst attention often support commercial negotiations and brand recognition.
-
Currency for acquisitions. Publicly traded shares can be used as consideration in mergers and acquisitions, expanding strategic options.
-
Employee incentives. Listed equity provides a transparent, liquid instrument for compensation plans, which can aid recruitment and retention.
-
Liquidity for shareholders. Founders, early investors, and employees gain a defined route to monetize their stakes, and an established market price supports estate planning and diversification.
The Case for Caution
The drawbacks are equally material and frequently underestimated:
-
Cost and management burden. The IPO process itself is expensive and time-consuming, requiring underwriting fees, legal and audit work, and extensive preparation. Ongoing compliance costs – including audits, investor relations, and regulatory reporting – persist for as long as the company remains listed.
-
Regulatory and disclosure obligations. Public companies face strict reporting requirements and must disclose financial results, material developments, and risks on a recurring basis. This transparency extends to competitors.
-
Loss of control and shareholder pressure. Founders and existing owners give up full ownership, and boards must respond to a broader shareholder base. Quarterly reporting cycles can push management toward short-term decisions at the expense of long-term strategy.
-
Market volatility. Once listed, a company’s valuation is subject to market sentiment, macroeconomic conditions, and sector rotation – factors largely outside management’s control.
-
Talent and governance strain. Post-listing life demands stronger internal controls, a more formalized governance structure, and executives comfortable operating in the public eye.
For boards assessing the option, practitioners generally recommend evaluating readiness across four dimensions: financial maturity, with audited accounts and predictable reporting processes; governance, including an experienced board and robust internal controls; management bandwidth to absorb the demands of the offering and life as a listed entity; and a clear plan for the capital raised. Alternatives such as private placements, growth equity, or a direct listing may achieve some objectives without the full obligations of a traditional IPO.