Keep your funding
When you think about the most effective way to raise capital for your company, an IPO is just one of many choices. “Keeping your options open,” from Ernst & Young’s guide to going public, explores alternatives to an IPO. The guide brings together the advice of leading experts who convene at our Strategic Growth Forum to discuss the pros and cons of an IPO as well as the rules, processes and planning requirements.
Three key questions
As you consider various approaches to capital infusion, ask yourself these questions about your company:
- Is your business following predictable growth patterns, or volatile highs and lows?
- Can your current team scale with the company’s predicted growth?
- Where is your company in terms of life cycle, talent infrastructure, market and customers?
Overall, your company’s objectives should dictate your optimal capital strategy.
Multi-track your way to capital
By diversifying your approach, you expand your options and negotiating leverage while reducing risk. Alongside your IPO preparation, you can pursue any combination of other strategies:
- Sale to a private equity firm
- Sale to a strategic buyer
- Partnerships, joint ventures and strategic alternatives
- Rule 144A listings
- Private exchange and cross-border listings
A US listing often still provides access to the deepest capital pool and a valuation premium.
Dual tracks — one goal
The dual tracks between an IPO and a sale may be a precursor or the outcome of an S-1 registration filing. You could keep both options open.Your decision depends on a careful evaluation of what your company would be worth if you were to sell it to a strategic buyer and what your stock price would be worth in an IPO.
Visit the IPO Center.