How do I take my company public?

One of the most frequently asked questions is simply "how do I take my company public?" The process to go public by direct listing, reverse merger, initial public offering or SPAC is very different. In this article, we'll cover the very high-level steps.

The first step starts with identifying your corporate objectives, determining which method is best to go public and then to plan the entire process so the steps, timing and costs are clear. A good IPO advisor can help with this.

Once you have a clear path, you'll want to create a data room containing all of your business and financial details to share with advisors, accountants, auditors, lawyers and underwriters. We use a standard checklist to make it easier for CEOs to know what information is needed and how to organize it.

Generally, the next step is to prepare financial statements that satisfy public company disclosure standards and then complete an audit by a qualified firm. As advisors, we'll introduce an accounting firm and audit firm to facilitate this process.

While the financial statements are being prepared, a company should begin the legal work with issuers counsel. Aside from any corporate reorganization matters, the primary issue will be to draft a registration statement for filing with the Securities and Exchange Commission (or applicable authority if filing to go public in Canada).  As advisors, we'll introduce corporate counsel and securities counsel to facilitate this process.

When the financial statement audit is completed and inserted into the registration statement, it can be filed if going public via direct listing or would then be reviewed by underwriters' counsel if you're going public in an IPO. As advisors, we assist IPO quality clients in attracting an underwriter to raise capital. Generally, companies seek to raise $15 million to $30 million but can raise more if supported by the business. If your company can't yet qualify for an IPO then the CEO would need to raise capital from their network or through digital advertising. In those cases, we can recommend advertising agencies that specialize in investor acquisition marketing programs.

At this point of the process, you'd want to be preparing for the stock exchange application and a multitude of other steps which vary based on whether you are taking your company public in a direct listing, initial public offering or SPAC transaction. As advisors, we help through all of these steps to ensure they are completed accurately, timely and cost-effectively.

Most companies that go public don't have the internal experience or knowledge required to plan or manage the process. As a result, companies engage a financial advisory firm like ours or attempt to take their own company public by themselves. It's certainly possible to complete a direct listing or IPO without professional help, but the cost of high-quality advisors should substantially be offset by a faster process with lower-cost and a much higher probability of success.

You can learn more about taking your company public, see some of our transactions, read about our services or contact us if you have any questions.