How Do You Know When Your Company Is Ready to Go Public?

There are a lot of factors in determining when your company is ready to go public. Timing the market and waiting until the business valuation aligns with expectations are important factors but so is being mentally prepared and having a good support team in place.

Here is an analogy that works well. I ran in the New York City Marathon this year. A lot of my preparation for the event was mental preparedness. Once I start running, I don’t want to stop until I reach the finish line. I have too much time and energy invested to stop. It also helped that my friends and family and even complete strangers were cheering me on. This support group helped me reach my goal.

The same holds true for the owner of a private company who has made the choice to go public. It’s important to be mentally prepared for the long hours of meetings, dealing with the press and answering to a lot of people. The whole process takes a considerable amount of time and pulls the owner from the day-to-day running of their business.  It is also essential to be surrounded by a good support group which should include a good accounting firm who will assist with the many reporting requirements, such as historical audited financial statements.  Another important ally to have is a law firm who will write documents and deal with a plethora of SEC correspondence.

Like running a marathon, once you have made the commitment to move forward, you are in for the long haul. Being mentally prepared for the challenge and having a good support group in place will help you cross that finish line.

Next week’s blog will provide information about what’s involved in filing the registration statement with the SEC.

Marc Fogarty, Audit Partner and a member of EisnerAmper's Public Companies, Cleantech and International Services Groups. Marc is experienced in public accounting, serving public and private organizations and has presented on IFRS to professional groups.

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