Considering an IPO? Key Questions to Ask

Considering an IPO? It’s a big decision.

Key questions to ask yourself include:

Will the market regard you as an attractive IPO candidate?

A company that is ready for an IPO usually needs:

  • A leading market position with a compelling investment thesis
  • An attractive financial model
  • Appropriate and foreseeable revenue growth and profitability
  • An established quarterly forecast process and reliable financial reporting controls
  • A proven management team
  • A robust corporate governance framework

Are you ready for life as a public company?

You will need the appropriate people, culture, policies and processes to comply with your reporting and compliance obligations. This can mean major changes in the way you run the business and might require that you add new employees with different skills.

Are your financials ready for prime time?

The SEC’s financial statement requirements impose reporting obligations on top of what is already required by US GAAP for private companies. SEC rules for auditor independence for public companies might also mean you will need to change auditors.

Do you have the right law firm in your corner?

A strong, experienced legal team can significantly reduce the burden of the IPO drill on management and allow you to keep an eye on running the business. Also, life as a public company will involve new challenges that an experienced legal team can help you prepare for and navigate.

This list is just the tip of the iceberg. For an inside look at the entire IPO process, download a copy of The Latham US IPO Guide. The US IPO Guide reflects the accumulated wisdom of the world’s leading IPO law firm, explained in a lively, plain-English style, free of jargon and gobbledygook. If you prefer a hard copy, click here

The views and opinions expressed herein are the views and opinions of the author at the time of publication and may not be updated. They do not necessarily reflect those of Nasdaq, Inc. The content does not attempt to examine all the facts and circumstances which may be relevant to any particular company, industry or security mentioned herein and nothing contained herein should be construed as legal advice.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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