What are the top strategies for balancing company and investor interests during an IPO?

2 Set the right price

Another key factor that influences the outcome of your IPO is the price of your shares. Pricing is a delicate art that involves balancing the interests of the company and the investors. On one hand, you want to set a high price that reflects the value and potential of your company, and that gives you enough capital to fund your growth. On the other hand, you want to set a reasonable price that attracts enough demand from the public market, and that leaves some room for appreciation after the IPO. You should avoid overpricing or underpricing your shares, as both can have negative consequences for your reputation, credibility, and future fundraising. You should work closely with your underwriters, who will conduct a valuation analysis, a roadshow, and a book-building process to determine the optimal price range and allocation of your shares.

3 Communicate the right story

A successful IPO is not only about numbers, but also about narratives. You need to communicate a compelling story that showcases your vision, mission, and value proposition to the public market, and that explains why your company is worth investing in. You should craft a clear and consistent message that highlights your strengths, opportunities, and competitive advantages, and that addresses any potential risks, challenges, or weaknesses. You should also prepare a detailed and transparent prospectus that discloses all the relevant information about your company, such as your financial statements, business model, growth strategy, governance structure, and risk factors. You should follow the rules and regulations of the securities authorities, and avoid making any false or misleading claims that could expose you to legal liabilities or reputational damages.

4 Manage the right expectations

Once you go public, you enter a new realm of accountability and scrutiny. You have to meet the expectations of a wider and more diverse group of stakeholders, such as analysts, media, regulators, and shareholders. You have to comply with the reporting and disclosure requirements of the public market, and provide regular updates on your performance, progress, and plans. You have to maintain a high level of transparency, integrity, and professionalism, and avoid any conflicts of interest or ethical issues. You have to balance the short-term and long-term goals of your company, and deliver consistent and sustainable growth and profitability. You have to manage the volatility and uncertainty of the stock market, and cope with the pressure and feedback from the investors.

5 Retain the right talent

Going public can also have a significant impact on your human capital, which is one of your most valuable assets. You have to retain and motivate the talent that helped you build and grow your company, and that will continue to drive your innovation and differentiation. You have to align the interests and incentives of your employees with the goals and values of your company, and ensure that they share your vision and mission. You have to design a fair and attractive compensation and equity plan that rewards your employees for their contributions and loyalty, and that encourages them to stay and grow with your company. You have to foster a positive and productive culture that supports your employees' well-being, engagement, and development.

6 Leverage the right partners

Going public is not a solo journey, but a collaborative effort that involves various partners and advisors. You should leverage the expertise and network of your venture capitalists, who can provide you with strategic guidance, market insights, and connections. You should also hire and work with reputable and experienced professionals, such as lawyers, accountants, bankers, and consultants, who can help you navigate the legal, financial, and operational aspects of the IPO process. You should seek and listen to the feedback and advice of your partners and advisors, and trust them to act in your best interest. You should also maintain a good relationship and communication with your partners and advisors, and appreciate their support and collaboration.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?