Are you ready to go public?

Is your company ready?

Going public is a big decision. Your decision to go public should reflect your long-term strategy of growth, value creation or as an exit strategy. Make sure you have clear understanding of the detailed process and how this decision will impact your company.

Superior product or service

A well suited company qualifies as great candidate to go public because of the uniqueness of its product or service.  If you have an established company, most likely you have strong historical sales data to defend your position. Early-stage or Startups may show market research projections and clearly demonstrate product superiority.

Scale of growth

Is your company crushing your competitors? Are you well ahead of the industry average growth rate? Is your company’s product/service unique? If answered yes to all the above, you will have a better chance attracting prospective investors. Highly valued companies are perceived by consumers or future investors by having a unique product/service with a significant growth potential… a potential that will explode if the opportunity arose to go public.

Many companies that have successfully gone public have demonstrated market support for their product or service that would sustain an increasing annual growth rate for a number of years. The higher the perceived growth rate, the sexier the investment becomes.

Strong management

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.

 

Is the timing right for your market?

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.

Josh Turk Halifax NS MarketingJosh Turk,
SVP of Marketing
joshturk@roxburycap.com
Roxbury Capital Group, www.roxburycap.com

2018-08-09T17:39:10+00:00