{"id":4451,"date":"2016-04-04T10:47:30","date_gmt":"2016-04-04T15:47:30","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-finances\/members-of-the-going-public-team.html"},"modified":"2024-06-06T04:12:47","modified_gmt":"2024-06-06T09:12:47","slug":"members-of-the-going-public-team","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/members-of-the-going-public-team.html","title":{"rendered":"Members of the “Going Public” Team"},"content":{"rendered":"\n
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Key Players in an Initial Public Offering<\/h1>\n
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A company’s underwriting team consists of a law firm, an accounting firm, an investment banker, and company executives. One or more of the members of your team may already be in place. It’s more likely, however, that you will need to reconsider your existing relationships or establish new ones that will serve you well throughout the initial public offering<\/a> (IPO) process.<\/p>\n

You will be spending a lot of time with the team members throughout the IPO process and for some time after the underwriting. Accordingly, you should appoint qualified team members with whom you work easily and are comfortable. The following materials are intended to give you some things to consider in selecting your IPO team.<\/p>\n

The Role of Company Executives<\/h2>\n

Before selecting the team to take a company public, the top executives of the company must commit themselves to take on the responsibility and dedicate the time necessary to take the company public and maintain it as a public company after the underwriting. The company’s Chief Executive Officer<\/a> (CEO) and other advisers will play a key role in establishing the team and will have to make crucial decisions throughout the process based on the input of the other team members.<\/p>\n

The company’s executives should, in anticipation of going public, address certain "housekeeping issues," such as establishing or reviewing internal controls, reviewing the company’s bylaws<\/a> and stock option plans, and reviewing the company’s financials. The company should also consider implementing corporate communication policies, establishing investor and public relations programs, and developing standard annual and quarterly financial statements in the level of detail required by the SEC<\/a>.<\/p>\n

The Role of the Lawyer<\/h2>\n

It is important that you choose a law firm that has experience in taking companies public<\/a>. The attorneys must be familiar with the underwriting process, the rules and regulations of the SEC and state securities commissions, and stock markets<\/a>. An experienced attorney can also help to avoid delays in the prospectus approval process by ensuring that all of the filings are made on a timely basis and by anticipating potential objections of regulatory agencies and addressing them in advance.<\/p>\n

It is also important that your attorney have knowledge surrounding the industry in which you compete. Such knowledge will assist legal counsel in drafting the sections of the prospectus describing the business and the industry risks.<\/p>\n

The Role of the Investment Bank<\/h2>\n

Prospective public companies differ in many ways, according to the size of their offerings, their ages, and the extent of their operations. Likewise, there are large and small investment banking firms<\/a>, some of whom are full-service and some of whom specialize in particular geographical regions or particular industries. It is important that you select an investment bank that is a good fit for your company’s stage in its life cycle and objectives.<\/p>\n

The following factors should be considered in selecting an investment bank:<\/p>\n