Guide on Choosing Helpful Pre IPO Support Services
Once your business has reached a level of success where going public is becoming more and more viable, it’s time to start the pre IPO process. Many business owners are often unaware of the huge and complex steps necessary to successfully complete a float on the public markets. There have been countless small to medium businesses that have failed the pre IPO process, leading to either a failed float or no float at all. Hence, any smart business owner should look towards getting the best pre IPO support services possible, by following this guide.
Pre IPO support is usually provided by a range of different financial institutions. You will find that the biggest investment banks will be able to offer a variety of different advisory services to companies looking to go public. At the same time, more boutique financial advisors are also available. Ultimately, it will be up to the board and executive management to make the decision on whether to go with a large investment bank or a more boutique advisory service when looking to get pre IPO services completed.
Generally, large investment banks will have the facilities to help a company that wishes to make a very large offer to the public. These banks are best utilized for companies that are already significantly large in size, and are finally looking to make a public float. Multinational banks usually have expertise within the financial, health and technology sectors. Thus, if your business falls under these categories, it may be wise to contact a few managing directors who work in these major banks.
However, it’s important also to remember that boutique options may also be viable. Boutique advisory services are often much more tailored and specialized than those provided by major banks. On the flip side, they often have fewer facilities and connections to orchestrate a public offering that can generate maximum capital. At the same time, many boutiques offer fees which are much smaller than what is required by major banks.
Generally, smaller businesses that work in specialized industries will benefit more from going with a boutique advisory service rather than a large investment bank. However, medium to large private businesses that are already established in the market will likely benefit more from the greater outreach and connections that a multinational bank will provide. With that being said, it’s always important to consult with directors from each of these types of banks to get a good idea about what they could offer. Make sure to ask the tough questions when dealing with these bankers so that you can get a better idea of which service is best for your business.
Preparing for an IPO is a long and arduous process. It’s important that you get the best pre IPO support services possible to ensure a successful float. Considering everything that has been outlined, the first course of action for you will be to contact a range of different bankers in your area. From there, ask the tough questions and then make a valid conclusion with the board about which business will be best for pre IPO services.