BCBusiness

ILLUSTRATIONS: VICTORIA PARK APRIL 2016 BCBusiness 25 Public Issues D - I - Y M a n a g e m e n t Act the pArt Ideally company owners should start thinking about going public a couple of years out, preparing themselves and oper- ating like a public company, says McMillan. This could include developing the man- agement team; developing a budget and measuring performance; appointing inde- pendent directors to the board; forming an audit committee and having nancial statements audited; evaluating and imple- menting corporate governance practices; and building a positive public image. pAy Attention to timing Make sure it's the right time in terms of your revenue growth and ability to access capital, says Costa. It's also important to understand that, from a market perspective, there are "windows of opportu- nity" when the IPO market is open in certain sectors, according to McMillan. "You need to nd the right window of opportunity when there is an active investor base out there or institutions are wanting to make investments, and you've got to hit the ground at the right time." AnAlyze your reAsons for going public The main reason companies have an initial public o-ering (IPO) is access to capital. "I wanted to grow to a bigger scale," says Costa, "so this gives me access to capital, but secondary to that I wanted to create a model in which my sales reps could become owners in the business." Owners can also sell their shares as part of an exit strate„y, and going public adds a bit of prestige and publicity that can have positive business outcomes, adds McMillan. consider the drAwbAcks "The costs of going public can get up there," says Costa, noting that it also requires a lot of extra time while still running the business. And once the company is public, additional accounting and legal personnel will make it more expensive to oper- ate—and a lot less private. "You're putting your results out each quarter and the world can see what's going on," says McMillan. "You've also got to deal with the increased regulation that comes with operating a public company." 1 2 3 4 then proceed– with pAtience The core process of an IPO typically takes three or four months and involves ling a registration statement with the securities commission in the country in which you're listing, says McMillan. The company's manage- ment team and board plus investment bankers, accountants and lawyers work concurrently to get the prospec- tus led and the listing complete. While an IPO is the most com- mon way of going public, Costa did a reverse takeover of an existing public company that had capital and a structure in place. It can shorten the process because the core company is already listed, says McMillan. "You're just backing a private company into that public company." 5 Thinking of taking your company public? Craig McMillan, partner, assurance, at PricewaterhouseCoopers, and Peekaboo Beans founder and CEO Traci Costa, whose company is in the process of going public, walk you through it by Felicity Stone

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