Is an IPO the right move for your company?

When you are considering going public, there are many things to think about such as the company's growth trajectory and existing competition. When looking for the perfect time to IPO, it is important to keep in mind that timing may not be as important as what is happening with your company.

When the decision to go public has been made, understanding the percentage of market share the company has and how much more it can capture is of paramount importance. Before, during, and after the IPO, the company will still be “in-market” and will be faced with competition from companies of all sizes. The reality is that there still will be competition in the marketplace. Making sure that the new soon-to-be public company has and continues to grow market share is critical.?

Additionally, the company must be able to effectively communicate the vision, strategy, and growth plans with the broader investment community in the form of a solid IR strategy in order to increase trade volume and share price, as well as create value for the investors. If the opportunity arises for your company to go public and you have a significant portion of the market share, then it would be wise to do so.

One of the main benefits of going public is the ability to raise capital and sell shares. This can be a valuable opportunity, however, timing is an important factor. There are many variables that must be considered in order to make sure a successful IPO takes place.

In addition to having a solid growth strategy, entering the market at the right time is also critical. External factors such as the economy is an important consideration. The first thing that must be evaluated is how healthy the economy is. If the economy is growing and there seems to be no downside, then timing may not be important at this time. If the decision has been made to go public during difficult economic times, then timing can be just as or more important as a growth strategy and market share at this time.

When looking at the current state of the economy, it is important to consider what will happen with your company's competition. Will they be able to sustain their business model and maintain their top spot? Do they have a strong leadership team or an established brand? Is there a major shift in consumer demand that can be capitalized on by going public sooner rather than later?

The decision to IPO is a monumental decision and should be carefully considered from all angles. Once the decision has been made, a solid IR strategy needs to be developed to garner support for the new soon to be public company. The comms should be carefully thought out as this can make or break an IPO especially if there isn’t the Wall Street buzz generated, or any buzz that does get generated gets drowned out due to all the signal noise going on in our deeply digital world. Reach out if you’d like to see how our AI engine coupled with our proprietary investor database of over 300,000 investors with multi-millions of data points can help drive IPO awareness, share price, as well as more trade volume. Always happy to share insights and compare notes.?

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