Most IPO's get done. Those that don't are usually the result of the market not being receptive when the deal finally comes to market. If the underwriter is unable to pre-sell the shares, the offering is pulled. The consequences are serious. The company will loose the money spent in its IPO effort, which usually exceeds $500,000. As serious is the fact that the company will probably not be well received by investors in a later attempt to go public because of its prior failure.

In an IPO without an underwriter a company has two good options if the market is not receptive when the deal comes to market. The first option can be for the company to peruse the offering, at a lower price per share. This brings in some of the cash sought and gets the company listed on NASDAQ. The company does not loose the money spent in pursuing its IPO. The second option is to reduce the offering to an amount sufficient to recover the money spent on the IPO, and list the company on NASDAQ. This results in the company going public, having its stock traded, and being able to easily raise money later when the market improves.