How to IPO 101
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Transcript of How to IPO 101
Santiago Jaramillo
IPO 101
How to go Public
Presentation Agenda
Why IPO?
Preparations Steps Post
IPO
Why IPO?
Cash
Because of the increased scrutiny, public companies can usually get better rates when they issue debt.
As long as there is market demand, a public company can always issue more stock. Mergers and acquisitions are easier.
Trading in the open markets means liquidity. This makes it possible to implement features like employee stock ownership plans that attract top talent.
Preparing for the IPO
• IPO decision has been taken after due consideration (outside counsel recommended)
• Preparation for the IPO (pre –IPO)• Proper selection of advisors• Proper planning and implementation• Right timing from a market perspective
Key ingredients for a successful IPO
• Complex, multidisciplinary process• Assessment of the stakeholders needs• Benchmark of IPO versus alternatives• Assessment of Company’s IPO readiness
Things to know before deciding
How NOT to go public
Do It Yourself
Without a corporate structure
Without proper post-IPO
expectations
Steps for an IPO
Steps
Hire Investmen
t Bank
Firm and IB
Negotiate the Deal
IB Writes the
Underwriting
Agreement
IB forms Syndicate
Registration
Statement - Filed w/
SEC
“Cooling Off” Period
Effective Date + Red
Herring
Hype for Institution
al Investors
Set Price + IPO!
Post-IPO
Growth via Acquisitions & Mergers
Expert Status PR for C-Level Executives
6-month aggressive market build
Board of Directors should be active
Nurture Strategic Alliances
It’s not just about the money, make sure it is a
Right Fit.
• Princeton Corporate Solutions eBook
• Deloitte – Preparing for an IPO (PDF)
• IPO Basics – Investopedia.com
Resources
Questions?