IPObestpractices - THOMSON FINANCIAL September 2006 IPO...

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Given the recent surge in initial public offerings during the first half of 2006, IPOs appear to be back in favor as an effective means of raising capital for achieving corporate objectives. While market climate is an important consideration in launching an offering, companies must also take the time to adequately prepare for public life before taking that step. This report out- lines some of the key steps companies should take in the pre-IPO process in order to maximize their chances of a successful offering and a long and prosperous life as a public enterprise, as well as insight from IROs who have been through the IPO process. For more information, please contact Kara Newman at [email protected] IPO Best Practices Performance Matters SM © Copyrights Thomson Financial 2006. All rights reserved. Reproduction of, dissemination of, modifications to or creation of derivative works from this document, by any means and in any form or manner, is expressly prohibited, except with the prior written permission of Thomson Financial. This document contains trademarks of Thomson and its affiliated compa- nies in the United States and other countries and used herein under license. Non-Thomson marks are trademarks of their respective owners. Executive Summary Given the sheer amount of preparation involved, the transition from private to public status should be viewed as a long journey - a transformational process - rather than a one-off financial transaction. For many companies, a successful preparation process takes two to three years, and for some it takes even longer. As Molly Salky, Investor Relations Director at Build-A-Bear Workshop puts it, "The IPO process is best viewed as a marathon, not a sprint." Companies that fail to adequately prepare for public life may greatly diminish their chances of a suc- cessful IPO, not unlike a number of technology companies that went public during the 1990s "bubble," only to go belly-up months after their offerings. A lack of preparation may not only diminish the likelihood of achieving optimal stock valuation and financing potential but could actually put a company in a worse situation than before going public. However, a strong and well-planned IPO can provide an excellent head start on life as a public com- pany. Good advice from Barbara Gasper, Senior VP of Investor Relations at MasterCard: “The more prepared you can be, and the more you can act like a public company before you actually do an IPO, the easier it will be.” T able of Contents: Overview - Current Environment for IPOs. .................................. p. 2 The IPO “Process”. ........................................................................ p. 3 Rules of Engagement. .................................................................. p. 6 MasterCard. ................... ................................................... p. 9 Build-A-Bear Workshop ................................................... p. 13 IPO Preparation Checklist. ............................................................ p. 15 September 2006 THOMSON FINANCIAL
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IPObestpractices - THOMSON FINANCIAL September 2006 IPO...

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