As the President of a midsized privately held company, you have undoubtedly been reluctant to even consider executing an IPO. Yes. The infusion of capital that results from a public offering is very compelling. But then you back off whenever you even think about all of the distraction/disruption plus the legal and accounting fees. Your business had better be very resilient and highly profitable to withstand the IPO process. And then there are all of those ugly stories you have heard about the amount of time that corporate CEOs must spend on investor relations, the tricky board meetings, and the onerous Sarbanes Oxley compliance process. Like so many other leaders of midsized privately held companies, you may have decided that you don’t want to trade your independence for any amount of money.
It might be time to revisit your beliefs about IPOs. We are seeing continued growth of an increasing number of privately held companies STALLED by indecision among the private investors and a lack of growth financing. Are you so sure that you are actually free from investor relations and tricky board meetings now?
Consider what we see in our clients that are family owned or family dominated midsized business. Those business leaders had been spending as much as half of their time on succession, generational differences and unclear strategic direction. Clear distinctions between professional management and owner board members would be a welcome relief for them.
Consider what we see in our midsized clients that received money from private investors. Many of them have their hands tied when a former “silent” partner suddenly isn’t so silent…or they want to see dramatic return on their investment at a time when the President is proposing the acquisition of a complementary business through an equity swap. Sometimes the noise and distraction from inexperienced investors of midsized companies is louder and more costly than from shareholders of publicly traded corporations.
Consider how much more your company could do if it had sufficient capital. Consider how different your life would be if your retirement was fully funded by an exit strategy. Consider the executive talent your business could attract if it were publicly traded. Hmm. Are you sure an IPO shouldn’t be at least one of your company’s options?
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2012 is Ambler’s 8th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Aldonna R. Ambler, CMC, CSP has earned the right to be called The Growth Strategist®. She built a suite of companies that help privately held mid-sized companies in Achieving Accelerated Growth With Sustained Profitability® through opportunity and resource analysis, strategic planning, executive advisory services, growth financing and targeted search. She provides 40-50 strategic and keynote presentations each year and has done so for 30+ years. A multi-award winning entrepreneur, online talk show host and highly esteemed economic development advocate, Ambler continues to broaden her participation on corporate boards and serve as a growth financing intermediary for mid-sized businesses ($20-$200 million in revenue).