Taking Your Company Public? You’ll Need a Quarterback

You’ve probably heard about the frenzy to go public.

With the year only half over, U.S. IPOs have already totaled $171 billion, beating the record amount set last year. SPACs (a company created to merge with another company and take it public) have also been red hot. There were $166 billion in SPAC deals in just the first quarter of this year, exceeding the volume in all of 2020.

It’s easy to get caught up in the excitement. But going public is a time-consuming, challenging process that is difficult for most small and mid-sized private companies to navigate alone.

There are so many questions to answer, such as: Is an IPO the right move for our company? What will we use the IPO proceeds for? Is our company financially strong enough to go public?
How should the IPO be structured? What type of corporate governance do we need? What are the listing requirements of the target exchange? What experts should we rely on for advice?

Preparation is critical. It can take many months, if not longer, to launch an IPO. Companies that aren’t fully prepared will struggle to fully leverage the opportunities provided by an IPO to raise capital and fund growth.

That’s why you should consider partnering with a pre-IPO advisor who can help answer those kinds of questions, design a strategy for going public and manage the team of professionals needed to plan and execute an IPO. That team typically includes bankers, legal counsel, auditors, investor relations experts and others.

Here are five ways a pre-IPO advisor can guide you through the highly specialized and complex IPO process:

  • They can structure your company to attract investors and the right investment banker, and are adept at telling the company’s story and defending its capital market strategy.
  • They can advise how to set up internal systems and controls that enable the scale needed to launch an IPO.
  • They can provide valuable expertise in pre-IPO financial planning and analysis.
  • They can set up proper internal governance practices to ensure the company has a diverse mix of directors with the right experience.
  • They can identify, help select and coordinate an experienced team of experts to assist with underwriting, accounting, legal, regulatory compliance and corporate governance.

Has your company worked with a pre-IPO Advisor?