Going Public - Initial Public Offering
Become a millionaire in one day! Is this the real motivation for an IPO? Maybe, but before, there is much to do. Is your Equity Story compelling to investors? How sustainable is your growth moving forward?
To make one thing clear first of all: I am not an IPO consultant. I was part of an IPO at the "New Market" in Germany and my experience is how a stock market launch changes a company and what impact this causes to the daily business.
The positive impact is pretty clear:
- fresh money for the company
- a lot of money to the founding shareholders
On the other side the company is faced with:
- a lot more transparency, reporting and auditing
- high expectations of the new shareholders and analysts
- more short term focus on results
Nothing is wrong with the above and especially the increased transparency can be very positive. But before we go into the details let's distinguish two phases:
It's a bit like expecting a newborn. Strong focus on the future and full of plans. Very motivating and inspiring for the entire staff.