Companies plan for near-term offerings; many private businesses now operate with an eye to ultimate initial public offerings or sales
Article Abstract:
Maximizing liquidity in the near or distant future through an initial public offering or sale is becoming the reason for the formation of many private companies. These growth-oriented companies differ from the traditional closely held one in their willingness to use their equity to attract and keep workers or obtain outside financing. These companies want to be attractive as targets for future public offerings or acquisitions, and counsel who work with them need to pay special attention to capitalization, financing, intellectual property rights, relations with workers and among multiple founders.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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Marketing may trump technology; investors look for a company's ability to attract customers more than its tech innovations
Article Abstract:
Particular groups of investors are interested in financing the growth and going public of Internet/Web search services, traditional venture funds and a new kind of captive corporate venture fund investing for strategic reasons. These investors are attracted by branding prowess and generally shun deals based on complex technologies. Investors want liquidity through quick acquisitions, maybe made by a marketing partner more than by initial public offerings. The investment terms these investors seek are supported by these factors, particularly special preferred-stock provisions.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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The best way to launch an initial public offering; investors would prefer to see a stock option plan for insiders adopted well ahead of the IPO
Article Abstract:
An initial public offering (IPO) offers great advantages to a company and its officers but these benefits are best exploited by planning several years in advance. The company should assemble a strong management team and develop its stock option plan up to five years before the IPO. Underwriters look for companies with a strong history of accounting earnings growth and that are leaders in a niche area. Companies should get audited financial statements or retroactively auditable ones for three years before the IPO.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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