With an IPO a company must publicly announce its intentions and file with the SEC at the beginning of the process and before it can file it must have its books audited by an SEC sanctioned CPA firm. The initial audit process of the last two years of the company’s books can take 3 to 4 months. A company cannot start the audit process until their books have been properly prepared by an internal bookkeeper or CPA firm. The process of clearing comments with the SEC can take anywhere from 12 to 18 months. Only after a company has cleared SEC comments and gone on several roadshows will it discover what kind of investor response and valuation it will receive. In today’s marketplace underwriters are scarce and IPO’s are treated as relics from a bygone era.
Other posts of the serie
- Alternative Public Offering – Part 1 - May 5, 2009
- Alternative Public Offering – Part 2 - May 6, 2009
- Alternative Public Offering – Part 3 - May 7, 2009
- Alternative Public Offering – Part 4 - May 8, 2009
- Alternative Public Offering – Part 5 - May 12, 2009
- Alternative Public Offering – Part 6 - May 13, 2009
- Alternative Public Offering – Part 7 - May 14, 2009
- Alternative Public Offering – Part 8 - May 15, 2009
- Alternative Public Offering – Part 9 - May 16, 2009
- Alternative Public Offering – Part 10 - May 18, 2009
- Alternative Public Offering – Part 11 - May 19, 2009
- Alternative Public Offering – Part 12 - May 20, 2009
- Alternative Public Offering – Part 13 (This post) - May 21, 2009
- Alternative Public Offering – Part 14 - May 22, 2009
- Alternative Public Offering – Part 15 - May 25, 2009
- Alternative Public Offering – Part 16 - May 26, 2009
- Alternative Public Offering – Part 17 - May 27, 2009
- Alternative Public Offering – Part 18 - May 28, 2009
- Alternative Public Offering – Part 19 - May 29, 2009
- Alternative Public Offering – Part 20 - May 30, 2009









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