Cash Because of the increased scrutiny, public companies can usually get better rates when they issue debt. As long as there is market demand, a public company can always issue more stock. Mergers and acquisitions are easier.Trading in the open markets means liquidity. Thismakes it possible to implement features like employeestock ownership plans that attract top talent.
Key ingredients for a successfulIPO• IPO decision has been taken after due consideration (outside counsel recommended)• Preparation for the IPO (pre –IPO)• Proper selection of advisors• Proper planning and implementation• Right timing from a market perspectiveThings to know before deciding• Complex, multidisciplinary process• Assessment of the stakeholders needs• Benchmark of IPO versus alternatives• Assessment of Company’s IPO readiness
How NOT to go public Do It Yourself Without a corporate structure Without proper post- IPO expectations
Steps Hire Effective “Cooling Investment Date + Red Off” Period Bank Herring Firm and IB Registration Hype forNegotiate the Statement - Institutional Deal Filed w/ SEC InvestorsIB Writes the IB forms Set Price +Underwriting Syndicate IPO! Agreement
Post-IPO Growth via Acquisitions & Mergers Expert Status PR for C-Level Executives 6-month aggressive market build Board of Directors should be active Nurture Strategic Alliances
It’s not just about the money, make sure it is aRight Fit.
Questions?Resources• Princeton Corporate Solutions eBook• Deloitte – Preparing for an IPO (PDF)• IPO Basics – Investopedia.com