So far, IPOs have continued the booming pace in 2014. While some have worried about a potential bubble, with the JOBS Act in place and an improved economy, I believe the accelerated pace won’t be slowing down anytime soon.
If you are building a company today, you may want to consider whether or not an IPO is right for you. Keep in mind: the average duration from first financing round to IPO is 7 years.
Here is a quick guideline to assist with your planning:
1. Preparation Phase – six to twelve months
During this stage, you want to hire a CFO with IPO experience. In fact, of the 37 companies that have filed public offerings in 2014, nearly 54% hired a CFO with experience bringing private companies public.
Your battle tested CFO will be instrumental in updating your financial reporting to conform to Sarbanes Oxley and crafting the financial section of your S-1, the formal document that is filed with the Securities Exchange Commission (SEC).
The selection of a lead underwriter and, if needed, accounting firm should be completed by this stage.
Written by Lili Balfour. To read the full article, click here. Premier Business Network™ provides Guaranteed Benefits for Small Businesses™. Feel free to join the conversation about small business benefits at #pbnbenefits. For more small business tips or to become a member, visit our website at www.premierbusinessnetwork.com, and follow us everywhere @pbnbenefits.