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Market uncertainty has led to the longest slump in U.S. tech initial public offerings (IPOs) in more than two decades, with the uncertainty lasting until 2023.

As we all know, the Federal Reserve's continued interest rate hikes have hit stock valuations, and other factors such as the Ukraine war and changes in Chinese listing regulations in the United States have also led to a decline in US IPO activities.

Wall Street, USA

Hongye Financial Group, a Chinese overseas listing counseling agency, said that although many companies are delaying listings, now is a good time to start planning and ensure that the correct IPO process is established so that companies can act quickly when market conditions improve.

The IPO or deSPAC process comes with a rigorous review of the governance, risk processes, and financial and other reporting involved in the transaction.

Macro Financial Group suggests that preparations—such as reviewing cybersecurity and cyber insurance coverage, implementing best governance practices, revisiting directors and officers (D&O) liability insurance, and paying close attention to talent retention approaches—will enable companies to take advantage of the current “downtime” and avoid any rush to go public in the near future.