Maxim Group, LLC, a financial services firm headquartered in New York City, provides a wide range of wealth management, equity research, and investment banking services. Among these services, the experienced team at Maxim Group provides capital-raising options such as initial public offerings (IPOs).
For many business owners, an IPO is the ultimate goal. However, such a major change to a business's management and legal structure can be damaging to a company if it does not prepare properly. Below are a few considerations to ensure your company is ready for an IPO:
Ensure you have something valuable
The process of an IPO requires that your company owns or provides a valuable product or service. Before going public, make sure you have a brand name that is recognizable and that you either sell or offer something that sets you apart from the competition.
Assess your board and committees
Depending on how your board of directors and board committees are composed, you may have to make some changes to satisfy SEC requirements. Make sure your directors are familiar with running and growing a public company. If they aren’t, don’t be afraid to add new talent to the board that is.
Improve investor relations
As your company goes through the IPO process, you and your management team should be available to answer questions that your potential investors may have. Investor presentations should focus on operating cash flows, revenues, and company outlook and create a positive impression. Further, investors should be included in the pricing process during the IPO.
