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Revision with unchanged content. Some of the most highly recognized Chief Executive Officers (CEOs) of our time were the entrepreneurial creators of their firms. These CEOs distinguished themselves not only by starting their own firms, but also by successfully managing them for long periods of time after their initial public offerings (IPOs). Considering such successes, it seems reasonable to think that company founders would be supported when they wish to lead their firms through the IPO process. However, in reality, institutions which get involved at the time of the IPO such as Venture Capitalist and Investment Banks, often put pressure on the founder to leave their CEO positions. In this book, I examine the impacts of replacing the founder with a professional CEO in firms that have issued an IPO on a US stock exchange between 1996 and 2000. It is found that replacing the founder-CEO by a professional results in a higher valuation of the issue. However, both the long-term stock performance and the firms survival rate are higher for founder-led IPOs. This book is addressed to professionals involved in IPOs and corporate governance and to the academics focusing on top level management and IPOs.

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The author is a Senior Consultant for KPMG Advisory Services in Montreal, focusing on operations improvement of the finance function. He holds a Bachelor´s degree in finance from McGill University and a Master of Science in administration from Concordia University. His academic research focused on Corporate Governance in IPOs.

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