This document discusses the costs, time investment, decisions, disclosure requirements, and personal impacts of taking a company public through an initial public offering (IPO). It notes that while an IPO requires around 1,200 man-hours of effort over 4 months and discloses all financial and strategic company information, going public is recommended as it allows a company to raise significant funds while remaining in control.

1. “Are we done yet?”
New Economy IPO’s
March 27, 1996

2. CORPORATE PROFILECORPORATE PROFILE
• Designer
• Manufacturer
• Value-Added
• Distribution
• Designer
• Manufacturer
• Value-Added
• Distribution
“HUMAN-SCALE” ROBOTICS“HUMAN-SCALE” ROBOTICS

3. PRODUCT LINEPRODUCT LINE

4. What did I underestimate?
• Cost
• Time Investment
• Decisions to make? You Bet!
• Disclosure Requirements
• Personal Impact

5. Cost
Printing
1%
Road Show
1%
Audit
1%
Legal
4%
Commissions
6%
Proceeds
87%

6. Time Investment
• June 29th - Underwriter’s Letter of Intent
• June 29th to October 19th:
– ~200 meetings (Legal, Audit, Marketing, Staff)
– ~20 meetings (Road Show)
• October 19th - Completion of IPO
~1,200 man-hours of effort!

7. Decisions to make? You Bet!
• Legal (Firm, Audit, Employment Contracts,
Stock Option Plan, Share Purchase Plan,
Transfer Agent, Board of Directors)
• Selling (Underwriter Syndicate, Road Show,
Investor Relations)
• Other (Printer, Share Certificate)
And of course, the Share Price!

8. Full Disclosure
• Your Competition will read your Prospectus
• You are required to disclose your:
– Finances (including compensation)
– Growth Strategy
– Use of Proceeds
• 120 Documents x 12 copies (45 signed)

9. Personal Impact
Don’t forget about yourself:
• Employment Contract and Compensation
• Share Options
• Share Option Plan
• Escrow
• Dilution
Start planning now!

10. Recommendations
• Build a IPO team and delegate functions
(financial, prospectus, due diligence,
operations)
• Remember your business
And then, Go Public -
I highly recommend it!