- Mark Turrell
- Company profile:
- Imaginatik is the leading provider of collaborative innovation and Idea Management technology and services. For over 10 years we have developed software and consulting services to deploy enterprise-scale solutions for large and mid-sized organizations. Our goal is to deliver 10x return on Investment. We have a track record of delivering on our promise, applying our software and research insights to achieve success in some of the world's best organizations.
My struggles with the IPO process
You can actually go quite far into the IPO process and then in
retrospect realise you haven't been getting very far.
We did pre-marketing with an investment bank, which meant we went
with the investment bank to six institutional investors, pension
funds. The key was that if the pension fund said they were
interested, the investment bank would be interested. But those
advisors would rather they invested a bit of time and effort in
getting us to see those pension funds, that they went to get
validation, before they went to the next step.
So it looks as though you're getting really far through the
process but actually you're just getting through one hurdle to get
to the next one.
Your advisory team is always very concerned with reputation
It was worth it, despite the long-windedness.
Being a public company improved our visibility with our customer
base, and it improved our credibility. So big companies can say:
"This is a good company, they're different from the others, they're
financially stable and they're transparent."
The next thing is that it gives employees a real sense of
ownership. A lot of private companies give stock options to their
employees, but for those people who lived through the dotcom crash,
and those people that have worked for private companies with stock
options, stock options mean nothing. Stock options are a document
that you print out and, unless the company is sold in certain
circumstances, you're going to get nothing out of it.
Whereas if you're in a public company, you can look on the Yahoo
Finance website or wherever and see what your share options are
worth, and it they have real tangible value. Which can be a very
motivating influence on your employees - particularly if your share
prices go up.
Finally, it does give you a platform to raise more money with
relatively few conditions.
Your company has to be IPO-worthy. That means that it has to be
big enough, and there has to be an opportunity of making money for
investors and everybody else.
You need to have the base structures and processes and people in
place to actually be worthy of becoming a public company - even for
things as basic as having the tools in place to do quarterly and
Find out more about Imaginatik
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