As you’ll hear from our experts, the decision to go public, whether traditional IPO or mini-IPO, is a mosaic of many factors:
- Does the business provide a unique service or product that doesn’t have direct competitors?
- If the business has publicly traded competitors, what makes it unique?
- Cost structure (e.g. more efficient manufacturing, differentiated geographic footprint)?
Size / Scale
- Does the company currently have size and scale?
- If no, is there an opportunity and plan to reach a sufficient size to be meaningful for institutional investors?
- Use of proceeds
- Additional capital required to grow
- Employee recruitment and retention
- Adequacy of internal financial reporting and accounting controls (Sarbanes-Oxley)
- Short-term and long-term business outlook
- Financial performance trends and metrics for valuation
- Predictability of operations and confidence in projections
- Quality and depth of management team
- Public company experience
- Performance expectations
Successful IPOs can make founders, owners and senior executives millionaires overnight, at least on a spread sheet. Equally, millions of equity financing can also be raised overnight—dollars that will be essential for fueling growth initiatives: new products, expanded markets, employee hires, research and development and acquisitions
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