Guide

A guide to going public

April 26, 2023
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Going public Financial consulting
Financial reporting SEC matters Transaction advisory SPAC

How does a company go public? This guide will help your stakeholders determine if an IPO is the right path for your company by addressing some basic questions and provides an overall timeline of events and business considerations.

The purpose of this guide is to assist you in determining whether an initial public offering (IPO) of your company's common stock is a viable method of raising capital. The guide answers some of the basic questions asked by all the stakeholders involved in this decision. It also provides a guideline for the sequence of events involved in an IPO and some of the general business considerations involved in this decision. It is not intended to provide a detailed discussion of an IPO's technical requirements as these are exceedingly complex and continually changing. We encourage you to discuss the specific requirements of an IPO with your legal counsel, registered public accounting firm, and underwriter once you have decided to proceed further in your investigation. An IPO should not be viewed as an end in and of itself but instead should be considered the beginning of a new era for your company.

This guide:

  • Provides guidance on determining if, and when, your company is ready to go public
  • Reviews considerations for and against going public
  • Provides an overview of the procedures and processes required
  • Helps you prepare for the historic event

Explore the Guide to Going Public


Is a public offering right for my company?

The term going public refers to a closely held company’s initial sale of securities to the general public. To go public, a company must file a registration statement with the U.S. Securities and Exchange Commission (SEC) that is in compliance with the Securities Act of 1933 (1933 Act). In addition to filing the registration statement with the SEC, you might be required to file these documents

The process of going public

If you have decided a public offering is the best financing solution for your company, you should realize that the IPO’s success depends on careful planning and the assistance of a team of qualified professionals. The planning process should begin two to three years before the anticipated date of completing the offering. This lead time is important if you wish to keep IPO costs to a minimum…

The underwriting

A successful IPO provides a fair price for the company and any selling shareholder, a stable or rising share price subsequent to the IPO and a strong following of interested security analysts. Almost all IPOs are arranged through an investment banking firm (underwriter, managing underwriter). While nothing prevents you from conducting your own public offering, the use of a qualified underwriter is beneficial to ensure a successful offering...

The registration statement

Navigating the complexities of an Initial Public Offering (IPO) requires a thorough understanding of the registration statement, a critical document filed with the Securities and Exchange Commission (SEC). The registration statement, particularly the S-1 form, is essential for providing potential investors with detailed information about your company. Ensure a smoother IPO process and foster investor confidence by understanding the various components of the registration statement.

Life as a public company

Taking your company public introduces new responsibilities, such as keeping shareholders informed about significant developments and navigating complex business decisions that require board or shareholder approval. You must comply with SEC reporting requirements and balance the pressure to maintain stock value with long-term investments. Additionally, maintaining a positive image often requires public relations strategies. Understand the key aspects of managing a public company, including reporting requirements, proxy solicitations, insider transactions, and the associated liabilities and fiduciary duties.

  

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From IPO financing to SPAC transactions to direct listings, our depth of experience in assessing risks, addressing compliance and filing reports helps you succeed as a public company.

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