Understanding the IPO Process

In transitioning from private to public, a company’s risk profile will materially change as it becomes subject to greater regulatory scrutiny. It is important for company owners, shareholders to understand the choices and trade-offs available that properly reflects the values of the company and its directors and officers before, during, and after an initial public offering (IPO).

The initial public offering (IPO) process can represent a significant milestone for a company, and be the culmination of years of work by its owners and senior executives. But, the journey from private to public company is full of new risks and exposures.

Managing Risk

A company’s profile will materially change as it becomes subject to federal securities laws which can apply as early as when soon-to-be-public companies first make their case to potential investors, in the form of registration statements, prospectuses, and roadshow presentations. It can also face exposure to risks relating to patents, trademarks, copyrights, and trade secrets. And, the personal assets of a company’s directors and officers, including their spouses and estates, face significant exposures and increased scrutiny from regulators, plaintiffs’ attorneys, and the public.

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Understanding the IPO Process

Managing Risk

Learn more about constructing a D&O program leading into an IPO.