There is only one reason to go public and that is to raise capital. In order to maximize your chances of success you need to plan the “going public process” as follows:
1. Organize your process well in advance of taking the actual steps to go public. Timing is everything so do not wait until you need to raise capital and then rush the process.
2. Going public requires a team of professionals such as:
a. Legal counsel ( in-house and outside counsel)
b. Media experts
c. Investor Relations experts
d. transfer agent
e. An organized & professional internal staff to administer the process
f. Financial professionals to raise capital
g. Experienced officers & management
3. Prepare a business plan that addresses investors concerns, questions and expetations.
4. Get your financial statements audited even if you are going to be listed on the Pink Sheet. Market Makers will require them in most cases to support your stock.
5. Make connection with the investment community by attending conferences and roadshows.
6. Obtain Blue Sky/Manual Exemption privileges in 38 states so financial professionals, compliance officers, fund managers, registered reps and research analysts can recommend your securities. Why spend money on IR if brokers are not able to recommend your stock to their clients?
7. Hire professional media experts to get your free exposure.
Going public is an expensive and time consuming process and should only be accomplished with a professional team of advisors. Be prepared and be successful.
Tags: financing, going public, PIPE financing, raising capital, reverse mergers, stock loans
May 16, 2010 at 4:08 pm |
Mike – thought it would be worth noting that there are two common ways to “go public” 1) Initial Public Offering (“IPO”); and 2) Reverse Take-over (“RTO”). Which with its own pros and cons depending on the Company under consideration. With RTO there are a number of shells or “blank cheque” companies that are specifically created for RTO. On the TSX Venture Exchange there is the Capital Pool Company (“CPC”) program with over 300 companies currently looking for a Qualifying Transaction (“QT”) for the RTO.