Santiago Jaramillo

IPO 101

How to go Public

Presentation Agenda

Why IPO?

Preparations Steps Post

IPO

Why IPO?

Cash

Because of the increased scrutiny, public companies can usually get better rates when they issue debt.

As long as there is market demand, a public company can always issue more stock. Mergers and acquisitions are easier.

Trading in the open markets means liquidity. This makes it possible to implement features like employee stock ownership plans that attract top talent.

Preparing for the IPO

• IPO decision has been taken after due consideration (outside counsel recommended)

• Preparation for the IPO (pre –IPO)• Proper selection of advisors• Proper planning and implementation• Right timing from a market perspective

Key ingredients for a successful IPO

• Complex, multidisciplinary process• Assessment of the stakeholders needs• Benchmark of IPO versus alternatives• Assessment of Company’s IPO readiness

Things to know before deciding

How NOT to go public

Do It Yourself

Without a corporate structure

Without proper post-IPO

expectations

Steps for an IPO

Steps

Hire Investmen

t Bank

Firm and IB

Negotiate the Deal

IB Writes the

Underwriting

Agreement

IB forms Syndicate

Registration

Statement - Filed w/

SEC

“Cooling Off” Period

Effective Date + Red

Herring

Hype for Institution

al Investors

Set Price + IPO!

Post-IPO

Growth via Acquisitions & Mergers

Expert Status PR for C-Level Executives

6-month aggressive market build

Board of Directors should be active

Nurture Strategic Alliances

It’s not just about the money, make sure it is a

Right Fit.

• Princeton Corporate Solutions eBook

• Deloitte – Preparing for an IPO (PDF)

• IPO Basics – Investopedia.com

Resources

Questions?