Page 9 - Initial Public Offering - An Introduction to IPO on Wall Street
P. 9
Advisor Fees (Tax, Accounting, Consulting) ........................................................................... 134
Other Organizational and Unanticipated Costs ......................................................................... 134
6.1.4 Post-IPO One Time Costs ............................................................................................ 134
New Financial Reporting System and Implementing New Controls ........................................ 135
New Board of Directors ............................................................................................................ 135
New Compensation Plans ......................................................................................................... 135
6.1.5 Illustration of the Cost of Going Public by Gross Proceeds ........................................ 135
6.1.6 Accounting for the Costs of an IPO ............................................................................. 136
7. Timing ........................................................................................................................137
7.1 Considerations for Identifying ‘Open’ Market Windows ................................................... 137
7.1.1 Volatility Index ............................................................................................................ 137
Institutional Investors................................................................................................................ 138
Underwriters ............................................................................................................................. 138
The Company ............................................................................................................................ 138
7.1.2 Industry Competitiveness and the Results of Your Industry's Recent IPOs ................ 139
Blue Apron ................................................................................................................................ 141
Corporate Readiness ................................................................................................................. 141
7.2 Advice on Timing Your IPO ............................................................................................... 144
7.2.1 Delay If Necessary ....................................................................................................... 144
7.2.2 Prepare Early ................................................................................................................ 145
7.2.3 Communicate Expectations ......................................................................................... 145
7.2.4 Do Not Miss an Opportunity........................................................................................ 145
7.3 Signs You’re Ready To Go Public ...................................................................................... 145
7.3.1 Sign 1: Ability to Accurately Forecast Financial Performance ................................... 146
7.3.2 Sign 2: Having the Right Executive Team in Place ......................................................... 146
7.3.3 Sign 3: Audit-Ready Business That Regularly Closes Its Books on Time .................. 146
7.3.4 Sign 4: Having Realistic Valuation Expectations ........................................................ 146
7.3.5 Sign 5: Compelling Case for Going Public .................................................................. 147
7.3.6 Sign 6: Having a Clear, Strategic Roadmap ................................................................ 147
8. Actors .........................................................................................................................148
8.1 Stock Issuer ......................................................................................................................... 149
“An organization that registers, distributes, and sells a security on the primary market. An
19
issuer can be a private company or a government .” ......................................................... 149
8.1.1 Identifying an Issuer of Stock/Securities ..................................................................... 149
Page 9
