Guide to Going Public
WHY are you going public?
| Situations, cases and motivations
For private companies seeking to raise capital or provide exits for
their shareholders, an IPO can be a superior route and strategic
option to funding growth, and to access deep pools of capital. While
challenging markets will come and go, the companies that are fully
prepared will be able to create value and fully leverage the IPO
windows of opportunity whenever they are open.
There are many situations when companies start to evaluate an IPO as
one of their strategic options. Funding or exit motivations, growth,
internationalization and changes in the industry landscapes are some
triggers for strategic considerations for pursuing an IPO. Depending
on the stakeholder, a mix of situations and motivations can lead to the
initial IPO considerations.
Some typical IPO cases are:
High-growth companies: To fund innovation, growth, acquisitions and internationalization
PE- and VC-backed companies: To exit and further fund growth of portfolio companies
▸ Family business - the company: To raise outside capital and enhance corporate
governance
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▸ Family business the owner: To unlock values, diversify risks and succession planning
▸ Scale-up companies: To attract talent and incentivize management
▸ Conglomerates: To carve out and maximize values from different businesses
State-owned entities: To access capital market and enhance corporate governance
4 | Guide to going public
Typical contexts for companies that go public
Strong company
growth
PE or VC: exit
pressure and
maturity
First mover and
innovator
Front-runner and
industry disruptor
Consolidation
trends
IPO of
competitors
Next generation or
successor
New openness and
public awareness
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