In this video, Gunster securities law and corporate governance practice leaders Bob Lamm and David Scileppi discuss the pros and cons of taking your company public, and what to consider before moving forward with an initial public offering.
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Video produced by TheLaw.TV
Is an IPO right for your business?
There are some very good reasons to consider an IPO.
It can raise capital, provide liquidity and create wealth.
And it can attract attention from buyers.
But IPOs are costly and time-consuming, and they can really distract management from running the day-to-day business.
So you need to think very carefully before going that route.
Right. You need to have good reasons.
You also need to carefully consider your selection of advisers. It's important that you feel comfortable with them because you’re going to be spending a lot of time, and dealing with a lot of issues with the people you choose.
Timing is critical, too.
You need to choose the right time for your company, both from a performance perspective as well as a cultural perspective.
And market timing is important, too – and that's the hardest to predict.
Right. You need to keep your expectations real and really understand what you’re getting into.
That’s also true of the post-closing period. Doing all the things you need to do once you’re public is challenging, and the transition can be tough and can take a long time.
These are just some of the issues to take into account when you’re deciding whether to IPO or not to IPO.
