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6 Things that Can Help Get Your Company to IPO

6 Things that Can Help Get Your Company to IPO

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What are the best things that can help get your company to IPO?

  1. Company growth
  2. Revenue
  3. Capital
  4. Demand
  5. Partnerships
  6. Investors

 

Taking your company to IPO can entail a lot of effort and responsibility on your end. “How to take my company to IPO” should never be just a trivial question one asks themselves—and once certain things are considered when it comes to taking your company to IPO, doing so will be a lot easier than ever!

Of course, when it comes to taking your company to IPO, once you take into account all of these things, you are guaranteed to get the outcome you desire. That being said, here are some things that can help you get your company to IPO:

 

Company Growth

Company Growth

When a company grows, it usually means that it’s time to take things further. In this case, company growth is one of the best things to consider when it comes to taking your company to IPO! After all, the bigger the company gets, the more exposure they can have to numerous opportunities!

The growth of a company is one of the best things to ever behold, especially for those that are still starting out in their respective fields. In any case, being able to take your company to IPO and maximize growth can be one of the best things that can help you prepare for the big leap!

 

Revenue

 

Another important factor to consider for taking your company to IPO is none other than company revenue. Revenue is important for ensuring company progress, and with taking your company to IPO being a big enough step as it is, this can be one of the important things your company should take note of!

A company’s revenue can basically make or break a company as a whole. An increase in revenue can spell great progress for the company, while a decrease can negatively affect the progress of the organization. Either way, when you ask yourself, “How can I take my company to IPO?”, consider this!

 

Capital

Capital

Capital is how much the company’s earning on a regular basis, whether it be gross or net income! An increase in it can really ensure massive progress for the company. Essentially, the more your company earns, the better it is to take it to IPO!

Taking your company to IPO can ensure an increase in your company’s capital, especially when you now have access to public sponsors that are willing to act as beneficiaries for your company. With more capital, your company can expand even more! But in the case of startups, once you notice that your company’s capital has started to increase, it might be time to take the leap and prepare to take your company to IPO!

 

Demand

 

With more benefits comes greater exposure for your company, which in turn can lead to a lot of demand for your products and services! Since your company has been expanding, your audience, too, expands with it. This is why it is important to consider demand before taking your company to IPO!

Once you take your company to IPO, demands for its services can be made more and more apparent! More demand for your company can simply contribute to its expansion as a whole. Think about it, with more demand from the public, the further your company can progress through the years! With that to consider, taking your company to IPO will be as worthwhile as ever!

 

Partnerships

 

Partnerships are another thing to consider when you want to take your company to IPO. When your company grows, there will be more opportunities for you to partner up with different corporations, which in turn can widen the scope of your company’s services! When you take your company to IPO, more partnership opportunities become more available for you to take, which in turn can really affect the progress of your company!

 

Investors

Investors

Investors are another essential part to consider for your company’s progress. With them, more funding would be available for the company, which can also be made greater when taken to IPO!

That being said, consider the number of investors your company has. That way, taking your company to IPO can be as easier to achieve than ever! Also, as mentioned before, this can also increase the number of investors your company can have, ensuring longevity for your company!

 

Key Takeaway

 

These things to consider when taking your company to IPO are more than enough to guarantee assurance on your end! With these things to consider, you’ll never have to ask yourself, “How can I take my company to IPO?”, anymore. In fact, you’ll be able to relish the progress your company can enjoy being taken into IPO!

If you feel like your company is finally ready to take this opportunity, there is no better step to take than contacting a business consulting firm like Sage Solutions. Sage Solutions can help take the burden from your shoulders during these momentous stages of your company. Don’t hesitate, contact Sage Solutions today and find out how you, too, can take your company to IPO!

Can Going Public be Great Thing for Your Company?

Can Going Public be Great Thing for Your Company?

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What are some of the best things to look forward to when taking your company public?

  1. Access to capital
  2. Visibility in the market
  3. Grow as a company
  4. Compete in the market and know your competitors
  5. Attract more personnel to your team
  6. Gain more opportunities

 

When it comes to running a company of your own, numerous things can happen. After all, “How can I take my company to IPO?” is a very common question that most business professionals ask themselves. How you take your company to IPO entails a lot of preparation on your part—but nonetheless, going public can be great for your company! Or can it?

 

Going public with your company, especially for startups, can have varying effects on your career, all of which depends on how you go about it. In fact, like most other things when it comes to business, there are certain advantages to look forward to, and certain disadvantages to watch out for and take note of! With all that said, can going public be great for your company? Here are some of the best things to consider when answering that question:

 

Your Company Can Get More Access to Capital

Your Company Can Get More Access to Capital

Capital is one of the most important things a business should always take into heart! For privately-owned companies, capital is usually funded internally through private equities, which is acceptable since most private companies adapt to this kind of work.

 

However, most private companies are incapable of funding internally, especially when it’s been done for some amount of time. In this case, going public can attract more IPOs to fund your company, which in turn can give your company a substantial boost in business!

 

Your Company Can Get More Visibility

 

Who wouldn’t want more exposure for their business? Exposure for your company to the public can be great in terms of business, especially for those companies that are just starting out! More visibility means more chances for your company to find willing investors, sponsors, and partners to work with. Also, going public increases your company’s visibility to the point where numerous interested applicants can apply to work for you, therefore also contributing to growth!

 

Your Company Can Grow

 

As stated in the last sentence of the previous paragraph, taking your company to IPO can lead to a substantial growth! Not only can you attract new clients and future employees, you also get to find potential partners to work with. Also, when it comes to growth, another thing to take from this is that this allows your company to expand your services as well, which in turn allows your company to expand clientele!

 

Your Company Gets to Compete in the Public Market

Your Company Gets to Compete in the Public Market

Of course, this is something that one should always look forward to when running a business! Competition in the business world is something that’s seen as necessary and unavoidable—and in this particular case, getting to compete with the public market should surely instill a sense of drive for your company!

 

Also, this particular case can also allow you to scope out other businesses as well, mainly that of your direct competitors. Getting to compete with the public market can allow you to get to know your competitors better, especially when it comes to your direct competitors. Either way, this can be one advantage you can look forward to when you take your company to IPO!

 

Your Company Can Attract More Potential Employees

Your Company Can Attract More Potential Employees

As mentioned before, taking your company to IPO can allow your company to grow. When it comes to the entire concept of growth, it can actually mean a lot of things. But nonetheless, getting your company to IPO can really grant a substantial growth to your company in terms of personnel. You are going to be able to attract more and more potential employees to work under for your company; much more than when your company was privately owned and operated!

 

Getting your company out there can really spread the word that you’re in need of new and fresh faces to get the business running—and with this particular aspect to consider, growth in all areas is never far behind!

 

Your Company Gains More Opportunities

 

Another thing to take note of when it comes to taking your company to IPO is none other than the fact that you and your company can gain a lot more opportunities for the future! More investments can be made, more partners to work with, more projects to take on, even the chance to move to bigger office locations are just some of the best and exciting opportunities to take note of and look forward to! Nonetheless, being able to handle all of these can really get your company moving non-stop on the road to success!

 

Key Takeaway

 

There you have it! The business world can be a tough world to thrive in—and these 6 advantages in taking your company to IPO can surely ease your fears in the world of business! So, instead of asking yourself, “How do I take my company to IPO?”, why not take the plunge and find the answer yourself? After all, what’s there to know if you won’t try!

3 Things You Should You Know Before You Take Your Company to IPO

3 Things You Should You Know Before You Take Your Company to IPO

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What are the things you should know before you take your company to IPO?

  1. You need a great CFO in place
  2. You should have a capable finance team
  3. You have to build the right board

 

“How do I take my company to IPO?” To answer this question, many things should be first considered. Going public is a big deal for almost any company. An IPO, or an initial public offering, allows your company to have a huge round of financing which can then be invested in the continued growth of the company. Hopefully, this should also make the company become more profitable or even more profitable than it already is.

Going public often gets a bad reputation because of the challenges and the complexity that is associated with it. The process of going to IPO, however, does not have to be difficult. One of the most important things CEOs should consider is to get started early enough, ideally after 18 months of operation. He or she should then bring together core business processes and functions that are crucial during the first year of reporting.

If done properly, taking your company to IPO can minimize expensive distractions and ensure compliance especially during your first year as a public company. But what should CEOs of startups and other private companies consider when thinking about eventually going public? Here are three things you should know before you take your company to IPO:

Great CFO

You Need a Great CFO in Place

 

Having a great CFO in place is important for any company that is already in their later-stage. It can be easy to reduce a CFO as nothing more than a glorified “scorekeeper” of the financials of the company. This is a common misconception because a good CFO doesn’t just keep score, he or she also makes it a point to oversee the entire business.

The CFO is also important because, over time, he or she tends to become the face of the company to the investors along with the CEO. The CEO and the CFO are expected to present the company during roadshows, but the CFO is going to be spending as much or even more time with the analysts and investors than the CE once the company becomes public.

It is not a good idea, however, to hire a CFO just before you take your company to IPO or worse, have your CFO exit the company as soon as the company becomes public. Having a dedicated CFO shows that your company has stability, so hire one that can help you both in the short- and the long-term.

 Capable Finance Team

You Should Have a Capable Finance Team

 

There is a bar for readiness that your finance team needs to overcome before you can take your company public. The leadership in your company need to be able to make a forecast about the business down to the finest details. For this reason, they also need to be able to close the books accurately and in a very timely manner.

You desperately want to avoid the dreaded “restatement of earnings” that casts a shadow of doubt on the competence of your company, so accuracy is important. Public companies also need to be able to report their earnings a few weeks after each quarter closes so the timeliness of your finance team is crucial.

Usually, the key finance personnel that is expected to do all of these reports directly to the CFO of a startup. These include the controller, head of auditing, head of financial planning, and head of tax. Before all of these second-level roles are filled by strong people, you typically do not have a finance team that is ready to go public.

Build the Right Board 

You Have to Build the Right Board

 

The board of a company is usually dominated by its lead investors during its early stages. A board membership that is populated only by venture capitalists with large ownership positions, however, often put into question the readiness of a company for IPO.

Most VCs have probably never run or worked at a public company so very few, if any, have a meaningful experience when it comes to serving on the boards of public companies. Also because of the guidelines that govern the SEC and stock exchange, the boards of public companies have requirements that the outside or independent directors of large investment often can’t fulfill.

Therefore, the CEO of a company that is expected to IPO needs to execute a transition within their board where most, if not all, of the investment board members, are replaced by independents.

 

Key Takeaway

 

You should take these three points into account if you are thinking about taking your startup, or any company really, to IPO. Companies that have spent the time addressing these things stand to experience fewer distractions during their first year of reporting to somebody other than themselves.

If you have ever asked yourself the question “How do I take my company to IPO”, the best place to start is having a finely-tuned management and finance system that can deliver data, drive performance, and encourage better decision-making.

How to Take My Company to IPO 4 Useful Answers to This Pressing Question

How to Take My Company to IPO?: 4 Useful Answers to This Pressing Question

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What do you need to consider when taking your company to IPO?

  1. Communication is key
  2. Meet with your investors well in advance
  3. Develop a long-term financial model
  4. Don’t compromise the business

 

Taking your company to IPO, or “going public” is more than just selling stock. For many growing companies all over the world, this is the signal that the business has made it. Many heads of companies nowadays are asking the important question of “How to take my company to IPO?” because ultimately, going public this the goal for many businesses.

Through an IPO, not only does a company gain the access to capital which can fuel their growth and provide liquidity for their investors and founders, they can also show off an unofficial stamp of approval from the market.

As you can imagine, though, the process to take your company to IPO takes a lot of money, time, and effort. A company must jump over many regulatory hurdles and meet the extensive requirements that are laid out in front of them. When asking the question “how to take my company to IPO?”, here are a few considerations you need to make:

Communication

Communication Is Key

 

You have to find the right balance when communicating with your team about an IPO. On one hand, you usually want to tell your people about your plans, at least the big-picture stuff. However, it is also not a good idea to relay the specific details such as pricing, the performance of your stock after the IPO happens, timing, etc.

Keep in mind that anything can and will happen, so you should always avoid giving out specific information. Once important information gets into the wrong hands, it could result in drastic responses from your customers as well as your shareholders.

Talking about your plans and aspirations in broad strokes is the right way to discuss your plans to take the company to IPO. Just remember to give yourself enough wiggle room when it comes to the finer details so you can be ready for the unexpected.

 

Meet with Your Investors Well in Advance

 

Not all investors are the same; this is true whether your company has a public market or private market investors. Investors at mutual funds have demonstrated that they have a track record of buying and more importantly, holding, all of the important positions in a company. In other words, if you can get some, if not all, of your investors to participate in a meaningful way, the chance of your IPO successfully goes way up.

Having investors that are active also makes the entire process of running a company much easier. So, build a meaningful relationship with your investors, meet with them well in advance of the IPO, and educate them about the process so they can participate. The more they know about you and your company before it goes public, the more likely they are to pull the trigger on an investment.

 Financial Model

Develop a Long-term Financial Model

 

The day you start earning revenue is the day you should start building your long-term revenue model. This can help smarten you up about the actual dynamics of your business as well as help you focus on areas that need your expertise as CEO.

You can do this by re-visiting your early assumptions regularly as a part of the learning process. If done right, you should have a business that is highly predictable over time as long as you make the right decisions.

In addition to investors and bankers questioning you about this model down the line, you need to have a framework in place before you even consider taking your company to IPO.

 

Don’t Compromise the Business

 

Nowadays, public market investors want to see profitability, or at least a clear path to it because they tend to focus less on the past and more on the future. Make sure that you have focused your key spending on growth initiatives before you take your company to IPO. Remember, it’s way easier to show your profits as a public company if you have already made the investments needed to ensure those profits while you are still private.

Try and run your business for at least a year privately before filing to go public. This way, you can moderate the growth of your expenses meaningfully during your early years as a public company. Once you can demonstrate to your investors the leverage your business would have down the line as well as a relatively flat line of expenses, they are sure to reward your stock handsomely.

 

Key Takeaway

 

Taking your company to IPO is one of the most significant events in the life of your business. The capital you raise through a successful offering can help the ability of your business to expand into new markets or grow through acquisitions. It can also reward your initial investors with liquidity help your company attract new talent with stock options and other equity awards.

These benefits do not come without costs, however. When you find yourself asking the question “how to take my company to IPO?”, carefully consider your options because one wrong decision can compromise the company you have worked so hard to build.