Companies thinking about, preparing for or going through the initial public offering (IPO) process have many things to do and many decisions to make (to put it mildly!). A relatively recent addition to this list of considerations for Delaware-incorporated companies is whether to reincorporate in a different state, with Nevada and Texas emerging as the front-runners.
Such moves – referred to in the industry as “DExit” – appear to be a response to recent Delaware court decisions that business leaders consider arbitrary and/or stifling to business interests, as well as a perception of Delaware as an increasingly litigious environment. To read more about this new landscape, see Cooley’s full blog post on CapitalXchange, where we analyze how we got here and what to consider now to help Delaware-incorporated companies understand what may be at play if they’re thinking of packing up and hitting the road.
