Initial Public Offering

With venture capitalists/funds investing in startups to help the business grow, an Initial Public Offering will see them withdraw their funds, having realized their exit strategy due to the changing structure and nature of the venture.

Taking a private entity into the public sphere is an expensive and exhausting process, however it is seen as a primary way to move the company into the next phase of growth, providing further capital with which the company can expand operations and increase the liquidity of operations.

The benefits of taking a company public are:

  • It serves to increase the exposure of the company’s brand to the market and prospective customers and investors, subsequently enhancing the company’s prospects for revenue and growth.
  • With the capital secured by an IPO, a venture can, if desired, acquire other businesses to expand operations.
  • A company will be able to procure enough capital to allay fears of long-term financial uncertainty
  • An IPO functions as an exit point for venture capitalists/funds

With the increasing competitiveness of the startup environment, companies often do not even make it to the IPO exit, failing to win the market share necessary to sustain itself and reach the phasing out of venture funds via an IPO exit.

As such, the financial struggle of nurturing a startup to achieving the growth phase of issuing an IPO requires business acumen, pragmatism and a strong long-term strategy. At Kusler Group, we support entrepreneurs looking to reach an IPO, offering professional advice on how to manage and cultivate a successful startup. Our advisors are on hand to help secure your long-term future.