Table 3
Percentage of Companies Reporting Risk in Prospectus

 

% of Firms Reporting Risk in the Prospectus

Risk Factors

Employee Growth Risk Factors

Dependence on employees

82.9

Managerial inexperience

 4.2

Limited underwriter experience

 4.6

Competitive labor market

32.1

Sales Growth Risk Factors

Competitive risk

94.9

Customer dependence

65.1

New product or service

27.9

Product dependence

11.6

Losing patent / not getting patent

37.4

Seasonal business

19.8

Supplier dependence

31.9

Technological change / obsolescence

39.6

General Risk Factors

Legal proceedings

 7.5

Limited operating history

24.8