Going public with an initial public offering can boost your business in both the immediate and long terms. (The average one-day pop, according to Nasdaq, is around 38 percent and 18.4 percent longer-term!)
An IPO is not only a way for a business to raise capital, it’s also a way to give back to the people who helped the company get to where it is. It’s a reward for their hard work and a chance for them to cash in on their investment.
To make it work for everyone, though, you have to have the right strategy in place. That’s why hiring an IPO consultant is a good idea. Here are five things the right one can do for you.
1. IPO Consultants Help You Prepare For Market
An IPO consultant will help you identify the right market for your public offering. They generate enthusiasm and understanding for what your business does and have the capabilities of presenting potential investors with the right value proposition for moving forward. They also help you understand how to price and allot shares for that initial launch.
2. They Assess Your Readiness
Creating an IPO is more effective when you have assessed your readiness as a business. That means knowing what your liabilities and assets are, how you’re positioned in your industry, and what type of cash flow you have in place. If there are any gaps in the armor, they help you understand where those gaps are and what to do about them.
3. They Shape Your Equity Story
IPO stocks need a good equity story to convince investors to buy-in. The key term here is “story.” Stories have a backstory (past), the main action (present), and a resolution (what happens in the future).
Your goal with the equity story is to present your company’s story to investors, business journalists, and existing players in a way that excites them to invest. You want to show them where you’ve come from, examples of your success, and where you’re going in terms they can understand. An IPO consultant can help you tell that story.
4. They Create Business Plans That Draw Investors
New IPO stocks might have a more challenging hill to climb when attracting investors. There’s just a different pressure that comes with reporting to a larger number of (public) investors. An IPO advisor will help you emphasize your innovation and execution as a company to excite potential investors.
5. They Empower You to Run Your Business
An upcoming IPO can take a lot of attention from your daily operations if you don’t have anyone experienced to guide you. Putting a consultant in charge of your go-to-market strategy allows you to handle the demands of your IPO without allowing business operations to suffer.
Going Public With Your Company Demands Expertise
As you can see, going public with an IPO is a decision that requires planning, strategy, and expertise. If you’ve never done it before, it doesn’t make a lot of sense to try your first one without any of these things in place.
That’s where an IPO consultant can really help out. Solomon RC Ali Corporation can help you find the capital you need to take your business to the next level, and it can work with you to devise a strategy for going public successfully. Schedule your consultation today.