Initial Public Offerings are on the Rise
On July 5, 2018, Marketwatch reported that the 2018 second quarter filings for Initial Public Offerings (IPO) was the busiest quarter since 2015, and the trend looks like it will continue. Ernst & Young also reported that the first quarter of 2018, globally, was at a high level, compared to the first quarter of 2017, which was the most active first quarter since 2007.
This trend was not unexpected. Last December, Business Insider reported that, “Americas IPO activity ends the year (2017) on a high, driven by strong equity markets performance married with increased investor demand.” It also projected a very busy 2018, “as a result of lower volatility across regions, equity indices still hitting all-time highs and increasing investor confidence.”
It quoted Dr. Martin Steinbach, an IPO expert, saying, “Everything is in place for an exceptional 2018. The stronger-than-expected turnaround in economic activity in the Eurozone has boosted expectations for global economic growth. All the major engines of growth in the global economy are now synchronized in an upward trajectory for the first time since the end of the global financial crisis.”
If you’re thinking about taking your privately held company public, now may be a very good time to do it. Forbes Magazine summarized the benefits of going public. “Not only does it validate the business, but it also gives the company access to funds to use for growth and expansion. Investors and founders benefit from the liquidity it provides. While it can be a complex process, when done properly, it can be a major turning point for a brand.”
That complex process is condensed by the magazine into five steps to preparation for going public. However, those steps don’t need to be overwhelming if you use The Bradshaw Law Group, an experienced and affordable advisor in the IPO process, from start to finish.
Your finances need to be in order and presented in a way that is appealing to investors. It is important to have team members who are well connected to the investor community and can present your company in the best possible light.
You also need to identify the elements of highest value in your business. If your brand is not well recognized, you can focus on the valuable services you offer, and the desirability of your product.
The next step is probably the most crucial, and the one where a knowledgeable advisor can help. That is to present a simple and compelling story, which shows the most favorable and interesting elements of your business. That will be your strong selling point.
Assembling your team of advisors, with the capability to handle and deliver the growth that you are looking for, is critical. They may already be among your current employees, but in many cases you will need to be referred to more exceptional talent.
Finally you will need to keep your capital structure simple and low in debt. A good advisor can guide you through converting debt to equity and other steps to achieve a clean balance sheet. Remember that “A successful IPO has several benefits, including credibility, market validation and a strong signal in terms of sustainability. While not an easy task, the payoff — growth and profit potential — can be well worth the effort.”
Making sure you are in full compliance with all SEC regulations and procedures is the primary focus of the law firm of Wilson, Bradshaw & Cao, LLP. Your success in filing your initial public offering and staying in good standing with the SEC will bring lasting benefits to your company.