TaxMatters@EY - March 2013
Going public? What directors need to consider before an IPO
David Fabian, Toronto
Going public is not for every company. There can be pitfalls and the stakes can be high. Because of this, there are many questions directors should consider before undertaking an initial public offering (IPO).
A national webinar for directors, co-hosted by Ernst & Young and the Institute of Corporate Directors, highlighted questions that private mid-market business leaders must ask before considering an IPO:
- How important is an appropriate board of directors for companies looking to go public?
- How do directors improve board effectiveness?
- Where should the line be drawn in terms of involvement of the board in management of the business?
- What are the risks of being a director of a public company?
- What are the challenges that directors may face, particularly in the mid-sized sector?
- What are the opportunities and risks of going public?
- Director independence — should directors be able to buy shares/have an equity interest in the businesses of boards they currently sit on?
Visit us at ey.com/ca/focusonprivatebusiness and sign up for Private Company Insights to get the latest news and exclusive invitations to events and webinars — all tailored for private mid-market companies.