If your company has reached a certain point in your life cycle, an obvious next step is to make the leap and go public.
To the outside, the decision to float is seen as a vote of confidence in your company’s growth projections and promise of return to investors.
But there are other funding options for your business, particularly if you’re looking to raise capital, and it’s important to consider all of these before starting on your IPO journey.
Private equity (PE) funding can be a good alternative to an IPO for your growth company at a variety of different stages of your business.
Some more developed businesses may look to a PE firm to provide funding before making a public offering.
PE firms bring with them a number of benefits. More often than not, the PE firm will put a non-executive on your company’s board who will provide impartial strategic business advice, which can be more attractive if your company is not be ready to go it alone.