Going public? What you need to know for a successful IPO.

• Author: Jolley, David
• Position: Money Talk

If you are leading a company that is preparing to go public within the next few years, you have much to consider: the strength and buoyancy of the US. capital markets, current economic indicators and your company's performance. No one will tell you going public is easy. But the rewards can be monumental. Here are the top 10 things you need to do to be successful.

1. Prepare for the IPO value journey

   When starting out, it's important to recognize that the IPO event is not the endgame. Rather, this will be a momentous process for your organization that will continue long after the actual transaction. Your journey begins with earnest decision-making and diligent planning. IPO readiness is defined, in part, by managerial diligence, endurance and organizational discipline. Successful IPO candidates often spend two years or more building business processes and infrastructure, recruiting executive and advisory talent, getting in front of financial and reporting issues and mustering the essential board of directors' commitment to go public.

2. Keep your options open

   Many private companies find the private capital markets to be a highly effective and less expensive route to raising capital. But before settling on the IPO route to growth capital, explore alternative strategies. The mergers and acquisitions market, private equity-backed deals and dual-track approaches (such as a concurrent pursuit of both an IPO and an M&A transaction) are viable alternatives to raise capital and offer their own unique strategic advantages.

3. Act like a public company

   Address key financial and reporting issues, including stock option issuance, revenue recognition practices and segment reporting processes, and how to provide achievable guidance and forecasts. Hold meetings with your current investors to review drafts of quarterly/annual filings and press releases and to answer challenging questions prior to the IPO. The well-prepared company that has addressed all the potential issues will be able to move swiftly when the market is right.

4. Build the right team

   Investors will place their bets on the substance of management and the probability of team execution. Your executive management, finance and accounting staff sales and marketing, R&D, production and beyond must be an enterprising group with deep-seated commitment and operational experience. Your public company board should be of sufficient size, structure, quality and depth, with individual expertise in strategic...