The IPO Process for Companies - The IPO Process for...

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The IPO Process for Companies A company that is thinking about going public should start acting like a public company as much as two years in advance of the desired IPO. Several steps experts recommend include preparing detailed financial results on a regular basis and developing a business plan. Once a company decides to go public, it needs to pick its IPO team, consisting of the lead investment bank, an accountant and a law firm. The IPO process officially begins with what is typically called an "all-hands" meeting. At this meeting, which usually takes place six to eight weeks before a company officially registers with the Securities & Exchange Commission, all the members of the IPO team plan a timetable for going public and assign certain duties to each member. Selling the deal The most important and time-consuming task facing the IPO team is the development of the prospectus, a business document that basically serves as a brochure for the company. Since the SEC imposes a "quiet period" on companies once they file for an IPO, which generally lasts until 25 days after a stock starts trading, the prospectus will have to do most of the talking and selling for the management team. The prospectus includes all financial data for a company for the past five years, information on the management team, and a description of a company's target market, competitors and growth strategy. There's a lot of other important information in the prospectus, and the underwriting team goes to great lengths to make sure it's all accurate, but we take a closer look at the prospectus in part three of the series. Once the preliminary prospectus is printed and filed with the SEC, the company has to wait as the
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This note was uploaded on 04/04/2012 for the course AASTT 24 taught by Professor Khlilaburass during the Spring '12 term at Arab Academy for Science, Technology & Maritime Transport.

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The IPO Process for Companies - The IPO Process for...

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