Guide to Going Public
Motivations for going public
66
The best reason to go public isn't to exit. It isn't to get the "going-public" experience. It's
because it's the right next step in the path on which you're guiding your company.
Cofounder of a pharmaceutical company
For many companies that have just started to consider going public, the key question is: Could an IPO be the right next
step?
The preparation starts with the careful evaluation of the pros and cons of an IPO, the potential use of proceeds and
examination of alternatives. This is in line with the first questions from investors at an IPO road show: Why are you going
public and what will the IPO proceeds be used for? Answering these fundamental questions is key to the success of an IPO.
A successful listing can help your company unlock access to financing to complete a strategic acquisition, create
opportunities to expand your business into new markets or provide an exit opportunity for your PE or other investors. In
addition, it can also improve perceptions of your business and brand with customers, suppliers and employees.
While not all businesses are suited for life in the public eye, for many fast-growing private companies, an IPO can raise the
capital needed to accelerate growth and achieve market leadership.
Attract and
retain
talent
Separation of
management
and capital
5| Guide to going public
Motivations for going public
Increase
brand
awareness
Improve
standing or credit-
worthiness
IPO
New growth
and re-
valuation of
company
Acquisition
currency
Exit for
shareholders
and investors
Increase
company's
capital
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