Initial Public Offerings (IPO’s) and Lantern Capital Advisors

An IPO (Initial Public Offering)

Initial Public Offerings are the ultimate liquidity event for an entrepreneur or company.  Typically initial public offerings generate significant wealth for the owners and key management of the company as they sell at a much higher valuation than they would as a private company, and depending on the percentage of the company sold to the public, owners can often maintain control over the business.  In addition to the increased liquidity for current equity holders, once a company has executed an Initial Public Offering and is listed on the stock exchange, it has the ability to issue more shares (generating more capital) without incurring any debt, thus giving the company a cheaper access to capital and an easier engine to acquire other companies.  Going public also gives a company greater prestige, and makes the ability to attract talent easier.  Some of the disadvantages of going public are the cost of reporting and compliance, and required disclosures of key business and financial information of the company.  With less than 7,000 publicly traded companies listed on the two primary stock exchanges in the United States (NASDAQ and NYSE), less than 1% of companies will ever become public.

Initial Public Offerings (IPO’s) and Lantern Capital Advisors

Small and mid‐sized companies looking to raise capital intuitively turn to investment banks for help. In fact, many growing companies view working with a well known investment bank as an attractive milestone that signals their company’s success and future potential.  However, CFOs should be aware of the significant fees involved when working with an investment banker, and more importantly, conflicts of interest with investment banking which can undermine the best interests of the company. 

Lantern Capital Advisors, as an hourly based corporate financial planning firm and corporate financial consultant, is an alternative to investment banking.  Just like an investment banker, we help our clients comprehend the mandatory steps required to go public.   We help clients identify, interview and select numerous quality underwriters.  Once our clients select their underwriters, we assist our clients during the due diligence phase, and monitor the company’s progress to ensure our clients realize their initial objectives post IPO.   

Not only does the event create a dramatic liquidity event for business owners and current investors, it also can appear daunting and unattainable.  If our client’s objective is going public, Lantern Capital Advisors makes sure it happens.

Fast                

Trusted                    

Cost Effective

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