Initial Public Offerings – An inside view

In a one-tier board of directors, at least some members of the executive management team also serve on the board (as executive directors), together with non-executive directors who are not involved in the company’s daily business. In a two-tier board, there is an executive management board and a supervisory board.

For an IPO company to be able to deliver transparency and comply with all listed company obligations, it is essential to have in place appropriate corporate governance, a working compliance function and a robust risk management system.

For an IPO company to be able to deliver transparency and comply with all listed company obligations, it is essential to have in place appropriate corporate governance, a working compliance function and a robust risk management system.

As a public company, the post-IPO company must comply with a broad variety of new obligations and requirements imposed by stock market rules and regulations, applicable laws as well as the company’s shareholders and, more broadly, the capital markets participants in general.

A follow-on equity offering

The internal team of the IPO company brings together people and functions that may never before have worked on a common project of such an intense nature. Many of the tasks to be completed as part of the IPO process have only little (or no) similarity with what employees usually do within the IPO company.

This transition can happen only once in a company’s lifetime.

An IPO marks the transition of a company from being privately held to becoming publicly listed.

the formal launch of the transaction is often considered a point of no return.

In some jurisdictions, such as the United States, pre-IPO communication is even severely limited by law.