If you are a business owner and are considering going public, then congratulations! This transition means that your company is doing quite well and is a huge step towards your business growth. Initial public offerings (IPO), a.k.a the first time your company’s stock is sold to the public, can be hugely beneficial. They can provide an influx of capital and attract new customers that will continue to boost your financials long past the date of the IPO. But, planning for an IPO is no small feat, and it’s important to make sure that you are doing it for all the right reasons. So, how can you get your company ready to go public? Below are some tips to get your business ready for its IPO.
- Do it for the right reasons
The first step in considering an IPO is to ensure you are doing it for all the right reasons. If you are only doing it for the name recognition or to become rich overnight, then it’s probably not the right thing to do. Preparing your company for an IPO is a huge investment that subjects your business to great scrutiny, and a lot will change afterward, so it’s important to weigh all of your options before making any final decisions.
- Get organized
When preparing to take your company public, it’s essential that you have all of your ducks in a row. This is because your company is going to be ruthlessly scrutinized by economic forecasters and business insiders alike so that the public can determine whether or not your company is a smart investment for them to make.
- Take care of tax concerns
Another part of getting organized is to make sure you have addressed all of your tax concerns. Preparing your company for an IPO brings along a whole host of new tax issues that must be addressed before it can happen.
- Assemble an IPO team
Assembling an IPO team that will manage the entire process is an essential step towards going public. This team will be responsible for selecting the overall plan and for determining stock prices, as well as delegating all tasks to other important players in the process, like investment bankers and financial forecasters. Also, as we mentioned above, this team should include a tax advisor who is experienced in IPOs so that they can help implement new tax provisions that work with your company’s current financial set-up.
- Consider the market/select the right time
Another element to be considered and prepare for is the state of the market before you get started on your IPO. It’s important that your IPO team be thorough in its assessment of the market as related to your business and the economic climate, as well as the public’s attitude towards them. This is because if your IPO fails, then all of your hard work and preparation will have gone to waste, and since it can only happen once, you don’t want to miss out on high stock prices just because you were not patient even to wait for more satisfactory market conditions.
- Consult with an experienced business law attorney
Ultimately, one of the very first things to do when considering an IPO is to speak with an experienced business law attorney who can help guide you through the whole process. There are many laws and regulations that must be considered, as well as documents and procedures to be prepared and followed.
At the Trembly Law Firm, we understand how important our client’s business needs are. We also know that every business is unique and requires a carefully crafted business plan to make sure they have a solid legal foundation to prepare for success. If you own a business and are thinking of taking your company public, please contact a member of our experienced team of lawyers at (305) 431-5678 today!