Last year was a good year for IPOs, with all three US equity markets showing a record-breaking, double digit increase in 2017 and IPOs outperforming the equity markets. We saw a strong start to IPOs in the first quarter of 2018, with an average return of 6% compared to a flat return from the broader equity markets. The US economy continues to demonstrate a strong outlook given recent robust jobs data, continued low unemployment and strong corporate earnings and GDP. These factors indicate that it is a good time to go public.
Going public requires executive management to be prepared to meet increasing shareholder and market expectations from day one. These include addressing shareholder earnings expectations, investor relations, periodic reporting, ongoing compliance and regulatory requirements, operational effectiveness and risk management. To make sure that you are prepared, it’s important to objectively assess your readiness for life as a public company.
Preparation is the secret to success. Planning, executing and managing an IPO is a complex task for any organization. The better prepared a company is, the more efficient and less costly the process can be. While the planning process for an IPO can start the day a company is incorporated or as late as months before a public offering, we recommend that an orderly plan be executed over a one to two-year period.
The decision to go public can be one of the most important in a company’s history—and one of the most challenging. Your company needs expert direction and assistance to stage a successful IPO and beyond the IPO, to being a successful public company. Part of this process includes creating a team of people to help execute various parts of the IPO and guide the company once it is public. In our in-depth resource, Roadmap for an IPO: A guide to going public, we do a deep dive on the key players that should be part of your overall team.
Key advisors include:
By appointing key advisors early, your management team is freed up to anticipate issues and avoid untimely delays, preserving the value of the IPO and enhancing the market’s confidence.
To get a more in-depth explanation about the going-public team or any other part of the IPO process, review our IPO roadmap paper and don’t hesitate to contact us directly for more information.