A key factor in determining the success of your public offering is the quality of the management team. To win over “credibilty” with Investors, your company must show experienced leadership that functions well as a team. HUGE PLUS: Ownership by management also demonstrates to potential investors that have a vested interest in the future of the company. Once your company goes public, your management team must be committed to conducting regular meetings involving meeting deadlines to provide financial reports required by the regulations on a timely basis.
The demand for IPOs can vary dramatically, depending on overall market strength, the public perception of IPOs, industry economic conditions, market prospects, and many other factors. When a bull market is booming, the market window for new corporate offerings tends to open and these new offerings enjoy bursts of popularity. (pwc.com)
It’s impossible to accurately predict market trends, but you must keep in mind the importance of timing and be prepared to change your timetable should an opportunity present itself. You do not want to be the deal that is just one day too late.
Look back to the burst of weed stocks that hit the market. An investor will most likely only allocate so much money they are willing to invest within a specific market. Launching an weed IPO after the initial surge means a bulk of your potential market investors have already invested within that sector, ie weed. Your market will be drastically smaller should you launch your campaign too late.
On the contrast, if you were prepared and were waiting for the right moment to take your weed company public when the market got hot, as soon as the buying feast began and news stories were flowing constantly saying “buy weed stocks”, you’d be right in the thick of it!
*Content sourced for this article by: pwc.com, kpmg.com
Roxbury Capital Group enables you to stay focused on what you do best, grow your business and get the Capital you need, Faster.
If you are interested in learning more about the advantages of taking your company public, please don’t hesitate to contact us.
SVP of Marketing
Roxbury Capital Group, www.roxburycap.com