...Thomas Shattan, managing director of New York investment banking firm The Shattan Group, argues that if a company is simply looking for capital that it can't raise in the public market, there are less-risky and potentially less-expensive alternatives.
"Companies don't have to go private. They can raise cash by just going to institutional investors," says Shattan, who has raised more than $600 million in private equity for small and midsize companies over the past three and a
Indeed, wider swaths of the investment community have been pumping money into the private equity market, no doubt hoping to capture the kind of returns that venture capitalists had been enjoying in the technology sector. Even
control-oriented buyout firms have been more willing to make minority investments in public companies.
"There's less of a fetish for control," says Shattan....