Bid on IPOs with a WRH+Co Account For People Who Think For Themselves
www.WRHambrecht.com/
Don't Miss Out Again. Download FREE Guide to Pre-IPO Investing!
www.FreeInvestorGuides.com/
Trade stocks, options, futures and Bonds online with optionsXpress.
optionsXpress.com
Raise capital from investors with a Private Placement Offering
www.regdresources.com
Don’t miss trading opportunities. Get tomorrow’s news today!
www.Investors.com
Free whitepaper: Use private equity to unlock wealth in your company.
SummitPartners.com
Own These Explosive IPOs...with The Profits and Safety You Need!
www.taipanpublishinggroup.com
America's 10 Leading IPO Experts Share Their Top Picks. Free Report.
www.NewsletterAdvisors.com
Financial news and analysis with a special focus on initial public offerings (IPOs), emerging companies and the high-technology sector.
www.123jump.com
This article takes a critical look at IPO roll-ups along with the management and operational issues for distributors that are considering taking part in a roll-up.
www.amtda.org
Analysis of the standard fee obtained by investment banks involved in IPOs and a possible explanation for this phenomenon.
jfe.rochester.edu
Provides IPO alert notifications for upcoming new stock offerings from different brokerage firms.
www.ewebwatch.com
A resource for IPO-related information that includes non-profit academic and commercial content. Includes historical data and statistics.
www.iporesources.org
Strategic and financial analysis of the Web industry, including stocks, venture capital, mergers and acquisitions, forecasts, and trends.
www.internetstockreport.com
Provides news and information on new filings, new offerings, upcoming IPOs, reports, and direct public offerings.
www.ipodata.com
Provides information and analysis for those interested in IPOs and secondarys - from small personal investors to large institutions.
www.ipofinancial.com
Provides comprehensive information on IPOs, including company description, financial information, key officers, IPO calendar, email notification of upcoming IPOs.
www.ipomonitor.com
Provides information on companies that have filed their Initial Public Offering circular with the SEC. The data includes the expected date of issuance, size of the deal, the company's product, and the lead underwriters.
www.ipospotlight.com
internet.com's IPO Watch provides a list of companies that are in the pipeline for a public offering or have recently gone public.
www.internetnews.com
Web site of Renaissance Capital -source for instutional research and information on IPOs, offers IPO news, IPO filings and pricings, calendars, market commentaries, IPO rankings, and a guide to IPO investing.
www.ipohome.com
Includes working papers, published papers, IPO data, and IPO links.
bear.cba.ufl.edu
Resource for IPO research and market data which allows investors to discover opportunities in early-stage companies that are conducting both public and private offerings in the $1 to 10 million range via a listing floor.
www.virtualipo.com
Company markets and syndicates high-technology IPOs. The site also offers news and analysis on IPOs.
www.vistaweb.com
Web site offering information about financing, partnering, mergers and acquisitions. Includes links to Edgar and other financial resources.
wsn.doremus.com
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Bid on IPOs with a WRH+Co Account For People Who Think For Themselves
www.WRHambrecht.com/
Don't Miss Out Again. Download FREE Guide to Pre-IPO Investing!
www.FreeInvestorGuides.com/
Trade stocks, options, futures and Bonds online with optionsXpress.
optionsXpress.com
Guide to Initial Public Offering (IPO) Basics
Raising capital for your small business by going publicBenefits of an IPO include:
- Raising capital for your business.
- Opening additional financial doors.
- Granting prestige to your firm.
- Making it possible to attract top talent by offering employee stock option plans.
- Increasing the value of your business.
Disadvantages of an IPO include:
- The process is extremely expensive, time-consuming and challenging.
- You're saddled with obligations to keep shareholders informed.
- You and your company can be held liable for any non-compliance.
- You lose some control of your company when shareholders must approve your actions.
Action Steps
The best contacts and resources to help you get it done
Determine your capital needs
IPOs are best for firms that want to raise at least $5 million. Most smaller firms look to raise between $5 and $15 million.
I recommend:
Use the business calculators at Dinkytown.com to help you assess how much capital you need to raise.
Establish growth potential
To be considered a good candidate for an IPO, start-ups and existing smaller businesses must demonstrate significant future growth potential — usually a minimum of 20 percent in earnings growth per year. Companies should be on target to reach a valuation of at least $100 million for a successful IPO.
I recommend:
ForecastPro is a software program that can help you chart your growth potential.
Understand the costs
An IPO is one of the most costly and challenging methods of financing your operation. Expect to give up approximately 25 percent of your firm's equity and be prepared for fees and expenses to mount as high as 25 percent of the capital raised.
I recommend:
IPOVitalSigns.com offers tips on how to evaluate and control the costs of going public.
Strengthen your management team
One of the main things underwriters look for is an experienced management team. Shore up your management team by hiring top-notch executives with a strong reputation in the industry.
I recommend:
Post jobs at TheLadders.com, which specializes in helping companies find top talent.
Find an investment banker
Look for small investment banking firms that have experience managing IPOs of smaller businesses. Any firm you consider should be handling at least four IPOs per year.
I recommend:
Check out IPOMonitor.com or IPO Central at Hoovers.com to find underwriters who are handling the IPOs of smaller companies.
Hire an accountant or attorney
Many investment banks won't even look at your business plan unless they have a personal relationship with your business or with someone representing your business, such as an accountant or attorney. Hire an accounting firm or an attorney with recent experience handling IPOs. This may help you get a referral.
I recommend:
Search for accountants who specialize in SEC/securities at AccountantsWorld.com and search for securities attorneys at FindLaw.com.
Consider hiring a consulting firm
Navigating the complex issues surrounding an IPO can be difficult and time-consuming for busy business owners. Several consulting firms have emerged to help businesses develop and implement an IPO plan.
I recommend:
Shop for IPO consulting firms, such as Nagle & Ferri, which provides complete pre- and post-IPO programs.
File a registration statement
You must file a registration statement with the SEC in order to make a public offering. There are two main parts to a registration statement: Part I must include descriptions of the business operations, financial condition and management; Part II is additional information. This vital form should read like a sales brochure.
I recommend:
Smaller businesses can use one of two simplified registration forms Form SB-1 to raise up to $10 million or Form SB-2 to raise any amount.
Do a road show
Once your registration statement has been accepted, you and your management team must do a 'road show'. Basically, your team travels nationwide presenting your company to stock brokers who will sell it to their public investors.
I recommend:
Sharpen your presentation skills by participating in training classes and seminars from the Leaders Institute.
Tips & Tactics
Helpful advice for making the most of this Guide- Make sure your financials are in order. If underwriters determine that aggressive accounting methods are the only reason your balance sheet is showing a profit, your deal will die.
- Underwriters will either underwrite the IPO on a 'firm commitment' or 'best efforts' basis. In the former, the underwriters purchase shares at a discount (generally 7 percent) then sell them to institutional and retail clients at full price. The second option only commits the underwriters to do their best to place the offering, with no guarantee to your company.
- Timing is everything in an IPO. Being flexible and able to take advantage of market ups and downs is another critical factor.








