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In Wake of Strong Sales, Time Is Right for Retail IPOs
CNBC.com | March 06, 2012 | 01:39 PM EST

Yelp's recent debut has injected a little excitement into the IPO market, which began the year at a sluggish place.

In the wake of strong fourth-quarter earnings, it may be a good time for privately held retailers to consider going public, according to Ted Vaughan, a partner in the retail and consumer products practice of BDO USA.

Many retailers rang up strong sales during the holiday season, putting them in a position to leverage this success in an initial public offering, Vaughan said. He expects this is even truer for high-end luxury retailers, which have bounced back more quickly from recession than other retail sectors.

He also expects the luxury retail segment to continue to grow this year.

While retail IPOs may not stir up as much buzz as the high-profile IPOs in the technology sector such as , Zynga , Groupon , and Yelp, there is enough money sitting on the sidelines looking for a place to invest to make these deals attractive, said Vaughan.

Also last year, private equity investment continued to flow into consumer products and services sector, making it the most active sector for private equity investment in 2011, with $33.66 billion in deals, according to research firm PitchBook . This included large deals such as J. Crew, BJ's Wholesale Club and Del Monte Foods.

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