Initial IPO Preparations

Selecting an Underwriter

You have decided to pursue an IPO and are ready to make the first moves to make it a reality. After assembling the necessary documentation and crafting a business plan that will satisfy potential investors, you’ll want to find an accomplished underwriter. As an underwriter is responsible for buying securities from the company and selling them to investors, it is vital to find the individual who has the experience to fulfill your company’s needs. Depending on the scope of the book-building process, you may wind up requiring a lead underwriter as well as an underwriter syndicate, so be sure to leave at least 6 months of time before going public to make your selections.

The IPO process encompasses roughly 3 months, or 12 weeks, from the first stages of preparation through the closing of the IPO and first day of trading. Your underwriter will help ensure that this process goes as smoothly as possible through an underwriting agreement that outlines all stock issued and the price of said stock.