VIDEO: What makes a company a strong IPO candidate

.

As you’ll hear from our experts, the decision to go public, whether traditional IPO or mini-IPO, is a mosaic of many factors:

Business

  • —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?

Rational

  • —Use of proceeds
  • —Additional capital required to grow
  • —Employee recruitment and retention

Company Readiness

  • —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

Management Readiness

  • —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

If you enjoyed the brief snippet, listen to the complete webinar HERE.

WATCH_VIDEO_BUTTONblog-photo

 

One response to “VIDEO: What makes a company a strong IPO candidate

  1. Pingback: Is An IPO or Reverse Merger Right For My Business? – PubCoCEO™

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s