Initial Public Offering (IPO)

An IPO is the sale of shares in your company to the general public – the ultimate diversification of your shareholder base. It’s extremely involved and expensive, often requiring considerable man-hours to reconfigure and prepare for such an event, unless you started your business with this in mind.

UPSIDE

• The cachet of being a public company in hiring, media, compensation, attracting investors, other financing and more.
• If you catch a wave in certain conditions in the market or your particular segment, it could help increase your value.

DOWNSIDE

• IPOs have mandated standards of operation and disclosure that are complicated, expensive and intrusive.
• They come with a loss of control over long-term vision for your business and pressure to deliver results today at the expense of better business judgment for tomorrow.
• Any changes in the overall economy or your business segment can hurt the valuation of your business regardless of how well it operates.