Is An IPO or Reverse Merger Right For My Business?
“Is An IPO or Reverse Merger Right For My Business?” – a question many small business/start-up owners (especially those raising capital) have considered.
Perhaps you met an investor who was only interested in a clear exit strategy through the public markets or you where enticed by the funding potential of the capital markets.
Every year, hundreds of companies go public via IPOs and reverse mergers. From pre-revenue stat-ups to large profitable companies, the pubic markets are a home to a wide range of companies. While just about any company can go public, not every company should.
According to the experts at Vintage, some of the top things to consider when deciding if an IPO or reverse merger is right for your company are:
1. Business – Is the business unique?
2. Size/Scale – Does the company have size/scale or is there an opportunity and plan to reach a sufficient size to be meaningful for institutional investors?
3. Rational – Why are you going public? To retain and incentive employees with stock, raise capital, grow through acquisitions, etc.
4. Company Readiness – Is the company ready for the costs, time, pressure/expectations and compliance required of public companies?
5. Management Readiness – Does the management have the skills and experience required to run a public company?
Do you still think a IPO or reverse merger is right for your business? Check out this FREE webinar: Going public: A “How-to” guide for making an IPO.