Mark Hirschhorn's profile

Questions to Ask before an IPO

The president and COO of Talkspace, Mark Hirschhorn has more than three decades of experience in executive leadership roles. Throughout his career, he has held dual CFO and COO responsibilities at both public and private companies. Mark Hirschhorn has also overseen several rounds of financing and initial public offerings (IPOs).

Before any company goes public, it is important that company leaders consider some of the following questions:

Q: How realistic is an IPO?

A: Companies aren’t always in the position to pull off a successful IPO due to issues relating to the market size or product. Before going public, leaders must ensure they can grow quickly in their current market, offer a disruptive product that will draw in customers, maintain a good competitive advantage, and are capable of accurately predicting the future performance of their business.

Q: Can the company commit to an IPO?

A: The process of going public takes time. However, an IPO that is completed quickly is often more successful than an IPO that is delayed or otherwise put on hold. For this reason, leaders must be certain their company is ready to fully commit to the process of going public.

Q: What will an IPO do to taxes?

A: Both individual and business taxes are affected by a company going public. This is why talking to a tax advisor ahead of time and preparing for these inevitable changes is essential for success. Poor preparation could land a company with high taxes.

Q: Are the right people part of the IPO team?

A: As most companies know, the people behind any action play a huge role in that action’s success, and this is no different with IPOs. Companies should have an IPO attorney and investor specialist assist with the process, as well as employees and executives who are familiar with IPOs and capable of managing operations during the transition period.
Questions to Ask before an IPO
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Questions to Ask before an IPO

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