How can you help your portfolio companies navigate going public?

1 Assess the readiness

Before pursuing an initial public offering (IPO) or any other exit option, you need to assess the readiness of your portfolio companies. This means evaluating their financial performance, growth potential, market position, competitive advantage, governance, compliance, and culture. You also need to consider the market conditions, the investor appetite, the regulatory environment, and the alternative paths available. You can help your portfolio companies by providing honest feedback, data-driven insights, strategic advice, and connections to relevant experts and advisors.

2 Prepare the story

Going public requires telling a compelling story to potential investors, analysts, media, customers, and partners. You can help your portfolio companies by helping them craft their story, refine their pitch, and communicate their vision, mission, values, and goals. You can also help them highlight their unique selling proposition, their competitive edge, their social impact, and their future plans. You can also help them anticipate and address common questions, concerns, and objections that they may face during the roadshow and the IPO process.

3 Choose the right option

Going public is not a one-size-fits-all solution. There are different options available for your portfolio companies, such as a traditional IPO, a direct listing, a special purpose acquisition company (SPAC), or a merger with an existing public company. Each option has its own advantages, disadvantages, costs, risks, and requirements. You can help your portfolio companies by helping them weigh the pros and cons of each option, understand the implications and expectations of each option, and choose the best option for their goals, stage, and situation.

4 Manage the process

Going public is a complex and lengthy process that involves many stakeholders, steps, and documents. You can help your portfolio companies by helping them manage the process efficiently and effectively. You can help them select and coordinate with the underwriters, auditors, lawyers, bankers, and other service providers. You can help them prepare and file the required disclosures, reports, and filings. You can help them set the valuation, pricing, and timing of the offering. You can also help them deal with any issues, delays, or changes that may arise along the way.

5 Support the transition

Going public is not the end of the journey, but the beginning of a new phase. You can help your portfolio companies by supporting their transition from a private to a public company. You can help them adjust to the new expectations, responsibilities, and pressures of being a public company. You can help them develop and implement best practices for corporate governance, investor relations, financial reporting, internal controls, and compliance. You can also help them maintain and enhance their culture, values, and innovation.

6 Leverage the opportunity

Going public is an opportunity for your portfolio companies to grow, scale, and create value. You can help your portfolio companies by leveraging this opportunity to achieve their strategic objectives and vision. You can help them access new capital, markets, customers, and partners. You can help them attract and retain talent, customers, and partners. You can help them build and strengthen their brand, reputation, and credibility. You can also help them explore and execute new opportunities, partnerships, acquisitions, and expansions.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?