The bell has run, the photo has been taken, the cheques are signed and you are officially a public company. Congratulations. But before you sit back thinking that most of the hard work is done – just how certain are you that your business is fully prepared for life as a public company?
If you are preparing your business for IPO – there’s one thing we want to ask you to do:
Focus on being a public company, not just on Going Public.
Life post IPO is a series of recurring challenges for most leadership teams. Your market, consisting of customers, competitors, suppliers and supporters, continues to accelerate your business – while, at the same time, building the operational infrastructure that a mature public company requires. This means, that it’s anything but the time to rest and let things take their course. If anything, this is where action speeds up. As a public company that now flexes and bends – you may need to regularly return back to the start of the cycle and test and analyse, tweak and create new process and strategies that see your business through in a new, more public, environment.
One sees it too often – companies who are on a mission to go public, receive all the support and encouragement beforehand, but very little does that support and encouragement continue after the IPO – when things become decidedly more complex. A direct reflection back on your readiness for the long-term, after the excitement of IPO.
Where EY note that the following items become the norm in Life After IPO,
- Manage capital raised to execute strategic initiatives and transactions
- Re-evaluate the management team
- Create and execute a strong communication plan
- Ensure transparency with no surprises
- Manage risk across the entire organisation
PWC touch on more holistic challenges that face organisations once IPO has been achieved:
- Changes in Company Culture
- Investor and Media Relations
“Being a public company is more than just preparing a prospectus document and statutory reporting requirements. It requires a practical and pragmatic approach that is relevant to your business”
In an earlier post, we discussed the detail that is expected of any organisation post-IPO. If IPO is in your growth plan, then you need someone to support you through the excitement, but more importantly, through your ongoing business growth. Chat to us today.