There are many reasons why an entrepreneur may want to take their company public. For starters, they may want to cash in on their shares, and an IPO will give their shares a definite valuation as well as a market to dispose of the shares. Secondly, an IPO is a great way to boost the brand reputation of a growing company. While it may be expensive, the publicity surrounding an IPO can help a business grow by leaps and bounds.
It is important to note that there are several ways of going public. The first option is to acquire all the shares of a publicly listed company. All you need to do is find a company with a low share valuation and few liabilities, and buy all the shares. The shares of the merged entities will be listed on the securities exchange. The second option is to offer shares to a select group of investors, each of whom has to bid on the shares. The highest bidder wins and pays for the shares they bid for. This will give the company a definite valuation. The last and best option is an initial public offering.
To protect investors and promote a sound securities market, there are strict guidelines, rules and laws that must be adhered to before an IPO can go live. Since the average entrepreneur may not be aware of all these guidelines and rules, it is recommended you hire an IPO advisory firm. There are many firms that may be able to offer this service, but they are not all equal. Therefore, you have to conduct the necessary research before committing yourself. Below are things to consider when comparing IPO advisers:
Only firms that have a valid license to offer IPO advisory services should be given any special consideration. A valid license is proof that a firm has met all the minimum legal and professional requirements to offer the services you are looking for. This means that they are competent and qualified to offer the services you require.
The most experienced service providers should be accorded special consideration. You are looking for an experienced IPO adviser because experience is a great teacher, so experienced service providers are able to offer the best possible advisory services. When comparing experiences, be sure to check the number of IPOs previously handled, years of experience and industries an IPO adviser has advised clients on. After all, an IPO for a biotech company cannot be the same as an IPO for a technology company.
As noted earlier, initial public offerings are usually costly, so finding an affordable IPO advisory firm is an important requirement. By requesting all the shortlisted firms to provide you with their quotes, you should be able to compare quotes to identify the most affordable IPO advisory firm in the city. Ideally, you should not be in a rush to make a decision as there are many key factors to be considered before a decision can be made.