Potential Investors and stakeholders are attracted to leadership that generates an exciting and positive atmosphere. One of the most critical factors is the personal commitment of the key members of the management team.
If you are not totally committed to your company, you have little chance of being successful. You need to demonstrate your “own skin in the game” with the personal commitment int terms of:
- TIME: Full-time, Extra Time is Required
- MONEY: Personal Funds Invested in Startup
- DEDICATION: Doing Whatever It Takes
There will be bumps along the way and you need to demonstrate by your actions that you are committed for the long haul and will not bail out at the first sign of trouble.
Over the past 15 years, M&A of Technology companies on average, have higher revenue multiples than companies that went IPO.
An IPO is a financing event of recapitalization and NOT a liquidity event.
An IPO is selling a piece of the company which can be a deduction of as much as 40%
An IPO should be your choice if you have an impressive growth history with accelerated future potential, and a management team with the experience to run a public company. These are some of the selection criteria that underwriters will use to determine if your company is capable of paying the fees to attract security analysts and promote the company’s stock.
Also, the expenses of being a public company, such as legal, accounting, auditing, insurance can add up to additional costs of several million dollars.
M&A is a better alternative to an IPO, if an acquirer will pay more than the IPO option, and the synergies in combining resources will result in a stronger more competitive company.
My associates and I have the experience and contacts to assist you in exploring the M&A option. If you would like more information on how you can
achieve maximum shareholder value, send us a note using the CONTACT page here.