Page 61 - Initial Public Offering - An Introduction to IPO on Wall Street

4.3.11 Engage With Investment Banks

One of the most important steps in preparing for an IPO is building relationships with
investment banking firms.

Strong investment bank partnerships can help build the reputation of a business and will
significantly affect the performance of an IPO as well as other capital raising and M&A
initiatives.

Investment bankers can help analyze and strengthen the equity background of an organization,
provide valuation advice and provide an understanding of the required IPO timing based on the
financial outlook and market tolerance of the business. Specific support and skills include the
following:

 Experience in marketing, organizing and helping the underwriting arrangement to generate
stock support after it is published;
 Market conditions and relevant investors / targets evaluation;
 Skilled in pricing and offering such that the business is appealing, but still provides a fair
return for the investor; and
 Visibility and continuing alerts to public investors

4.3.12 Media Relations
For organizations preparing for an IPO, it is critical to build a positive public image. A positive
image will boost the early sales effort and sustain the interest of the public in the aftermarket
stock.

Many businesses would also need to strengthen or build such a picture with prospective
customers and others affecting their purchase decisions (e.g. financial experts, industry media,
financial press, and stockbrokers).

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