TECHNOLOGY
When is the right time for a firm to go public ? “ High-growth and pre-IPO phases are major stress tests for any company ,” says Tony Tiscornia , Chief Financial Officer at business spend management platform Coupa . “ An uncertain market environment like we ’ re seeing now doesn ’ t help .”
The current circumstances certainly raise the question of when an IPO is right , and for whom . Going public is a sizeable longterm commitment that shouldn ’ t be seen as a shortcut to extra funding , nor an exit for early-stage investors .
“ FOR THOSE COMPANIES THAT HAVE DELAYED AN IPO , NOW IS THE OPPORTUNE TIME TO DIGITISE BACK-OFFICE FUNCTIONS ”
TONY TISCORNIA CFO , COUPA
“ It ’ s important for companies to remember that the initial costs of going public can be high , in addition to ongoing costs relating to compliance , reporting and disclosure requirements ,” says PensionBee ’ s Romi Savova . “ The extra scrutiny from regulators and investors once public also means that any company pursuing an IPO must be able to put an effective long-term communication strategy in place .
“ If the motivations surrounding an IPO are purely to access capital , options such as private capital or debt financing could be better alternatives . Similarly , if the desire for an IPO is to achieve an exit for early
122 October 2022