The company you cofounded last year isgrowing rapidly and has strong prospects for an IPO inthe next year or two. The additional capital that an IPOcould raise would let you hire the brightest people inthe industry and continue to innovate with new productresearch. There is one potential glitch: You and therest of the executive team have been so focused onlaunching the business that you haven’t paid muchattention to financial control. You’ve had plenty offunds from venture capitalists and early sales, soworking capital hasn’t been a problem, but anexperienced CEO in your industry recently told youthat you’ll never have a successful IPO unless youclean up the financial side of the house. Yourcofounders say they are too busy chasing greatopportunities right now, and they want to wait untilright before the IPO to hire a seasoned financialexecutive to put things in order. What should you doand why?
The company you cofounded last year is
growing rapidly and has strong prospects for an IPO in
the next year or two. The additional capital that an IPO
could raise would let you hire the brightest people in
the industry and continue to innovate with new product
research. There is one potential glitch: You and the
rest of the executive team have been so focused on
launching the business that you haven’t paid much
attention to financial control. You’ve had plenty of
funds from venture capitalists and early sales, so
working capital hasn’t been a problem, but an
experienced CEO in your industry recently told you
that you’ll never have a successful IPO unless you
clean up the financial side of the house. Your
cofounders say they are too busy chasing great
opportunities right now, and they want to wait until
right before the IPO to hire a seasoned financial
executive to put things in order. What should you do
and why?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
