Analysis of 145 post-2008 IPOs shows firms that failed during 2008-11 and then went public had the best 3-year returns (CAGR); pre-packaged bankruptcies performed the worst.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5424354

Over the past 15 years, we’ve looked at all 145 public companies that came out after the 2008 financial crisis and found some interesting trends:

⁠Companies that came out after pre-packaged bankruptcies did much worse than the average.

• For three years after the crisis, the financials sector didn’t see any new public companies.

• ⁠Stocks in the materials sector did really well in the three years after the crisis compared to other sectors.

• Energy companies had a much higher Debt/Market Cap ratio when they first appeared than companies in other sectors.

• On average, companies that went bankrupt during the 2008-11 period and then went public showed the best stock performance over three years, based on CAGR, across all the time periods we looked at.