Selling an IPO is a very complicated process. The first and most important thing to know is how to prepare for the sale. A good way to do this is by making a checklist of all of your financial documents, assets, and liabilities so you can quickly review them for any discrepancies that will have to be resolved before you file the final paperwork to sell the stock.
Once this is done, it’s time to write a list of all of the investors who are offering to purchase your stock, and determine if you need to meet with them at some point. There may be many factors that you need to consider, including how many shares you need to sell to get started, the price per share, and if they are willing to pay you an underwriter fee. You also want to make sure that they have the right assets to trade on. This includes a strong business plan and solid management, not to mention a track record of success.
Now comes the part of the meeting with your potential investors, but you don’t want to rush this process because you need to make sure that you understand how to sell your IPO and get them to take a risk that they can afford. Some people feel that there is no risk, or that the risk is too great. While others think that this is a small price to pay to have a big chance of success. You must know what the risk is, and if you are able to meet that risk, then you should be okay.
Before you meet with anyone to sell your IPO, you need to have a clear idea of what kind of deal you are looking for. Don’t just tell the person on the phone that you are considering an IPO. You need to discuss with them exactly what you want to get out of it, what it will entail, and what the return rate will be.
Word of mouth is a great source of information, but only if you take the time to find it. Send thank you notes to people you met, and ask if they know of any people you can connect with who would be interested in purchasing the stock. Don’t let someone pressure you into an IPO, and don’t take it personally if they don’t. They are probably just not informed about it yet, and may end up having a difficult time finding someone that’s right for them. If you have any recommendations, they should always be taken seriously.
In closing, don’t forget to meet with a real estate agent as well, but don’t give up hope of finding an investor to work with until you have talked to an underwriter or lawyer. to handle this transaction. In addition to learning how to sell your IPO successfully, you’ll also need to learn how to handle these negotiations properly, which will help make the entire process easier down the road.
