What would be the exit for the VCs? they could have kept it private without the VCs, but I don't think VCs line up for dividends at the end of the years. That forces them to create an exit event for a company that seems in a nice path.
If you wanted to keep the company private and give the Vc's an exit you can always do a leveraged buyout. Basically borrow loads of money from a bank and use it buy back their equity.
doesn't that pit the management against the VC on pricing when doing a management initiated LBO?
Sure. It's not a perfect alternative, but it's an option. I imagine it would be a happy negotiation. Basically just trying to figure out what multiple the VC would want and negotiating a fair outcome.
IPO
I don't get the point of going public when you don't really need money. With the press trying to find sensational stories, the sheepish behavior of the markets etc.
An IPO provides liquidity for the stockholders. That's almost always the reason for an IPO when the company doesn't need the cash.