Firms going public often use defenses to prevent takeovers. Managers do this when they earn a lot, own few shares, and have little oversight from other shareholders. Having a defense makes it less likely for a firm to be acquired later on. But it doesn't affect the price paid for firms that do get bought. This shows that defenses don't help firms get sold for high prices. Instead, managers make non-managerial shareholders pay for the protection. So, even at the IPO stage, there are issues with how managers handle the company's interests.