Initial Public Offerings (IPO) are the ultimate liquidity event for an entrepreneur and/or company. Typically initial public offerings generate significant wealth for the owners and key management of the company as they sell at a much higher valuation than they would as a private company. Depending on the percentage of the company sold to the public, owners can often maintain control over the business. In addition to the increased liquidity for current equity holders, once a company has executed an IPO and is listed on the stock exchange, it has the ability to issue more shares (generating more capital) without incurring any debt, thus giving the company a cheaper access to capital and an easier engine to acquire other companies. Going public also gives a company greater prestige, and makes the ability to attract talent easier. Some of the disadvantages of going public are the cost of reporting and compliance, and required disclosures of key business and financial information of the company
We help our clients comprehend the mandatory steps required to go public. We help clients identify, interview and select numerous quality underwriters. Once our clients select their underwriters, we assist clients during the due diligence phase, and monitor the company’s progress to ensure clients realize their initial objectives post IPO.