If you are considering taking your business from a private company to a public one, you should know that the decision is a very big one. It is hard to decide if you should actually do so at all, and also how you will end up doing so. You also may want to seek the professional help of a prime broker.
There are two questions you should be asking yourself if you are considering going public. Firstly, are you and your team prepared to run a public company? Secondly, is your company prepared to go through the initial public offering (IPO) process?
Prepare to Be a Leader
Running a private company, even if you’ve always had investors, is much different than overseeing a public one. Once you go public, your leadership role is much altered. You are now responsible for things like increasing communication with your investors, media, and analyst teams. Before you even start the IPO process, it is probably a good idea to prepare for your new role by undergoing training in media and filling other gaps in your knowledge.
Preparing Your Company
You might be prepared to run a public company, but is the rest of your company ready to go public? You may need to do some serious company grooming when you decide to start going through the IPO process. Ask yourself whether your company has been making consistent revenue, if there is extra cash to fund the process, and how much growth potential there is in your sector.
Practice Run
Many companies literally go ahead and run their businesses as if it was public for a year or two, which can help prepare for the actual event. You can assess whether or not your company consistently meets its earnings, how you did running meetings and assessing quarterly snapshots, if your planning process is accurate, and how much time the process will add to your overall workload.
If you need more help preparing (or even if you don’t), consult the expertise of a prime broker at IPO firms. The professionals at IPO services or an IPO company have been through the process many times and can help you make the transistion smoother. More like this article.