Renew and recreate
The IPO value journey is a recurring series of challenges for executives. Market outperformers continue to accelerate the business, all the while building the infrastructure and management practices that a mature public company requires. You may need to return periodically to the beginning of the cycle and recreate strategies and processes.
What will your equity story be a year after the IPO? Will it be as compelling as it was before you went public? Companies must not be blinded by the euphoria of the IPO. Companies are often well supported until the IPO, and then once they are public, things get complicated. Companies need to be well prepared for what follows.
How to be a public company:
- 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 organization
Focus on being a public company - not just on going public
Throughout the IPO value journey, senior management's focus should be not only on going public but also on being public. IPO readiness can lead to a successful IPO outcome. But all of the best financial engineering will not create business prosperity — only proper planning and adherence to strong operational execution will forge the path to long-term success.
The transformation from a private company to a public enterprise is a life-changing process for any organization. And it will continue long after the actual IPO transaction.
The IPO may be the most important transaction in a company's life, but it's often just one more milestone along the road to market leadership.