أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
Going public is usually to raise additional capital thus the business has to have gone through establishment, then growth and now needs capitlsation to expand to raise the company to critical mass. The entrepreneur is essentially steering the vessel and decisions on when yo go public needs to be thought out, mapped and executed. Timelines for this are dependent on the growth factor of the business. In my experience it is not good to raise an IPO until at least five years in with sold track record of growth.
If I understood your question right, I believe you're asking when does an entrepreneur list his/her company in the stock market through a stock exchange. That's what "Taking a company public" means. If that's the case, companies that go public they do it for two main reasons:
1. To get more funds through the stocks they will offer in the IPO (initial public offering). They might need those funds to expand and grow but they don't want to do it through loans.
2. To get ready for merger with other companies which are already listed in the stock market.
Usually at this stage the business is not an SME type and not run by one entrepreneur. At that stage there is a board of directors for the business which can still include the original founder.
After he has finalized his product or service and filed all the appropriate paperwork he is ready to compete in the marketplace.
When the business is at a valuation of $2+ Million dollars
when he have the ability to make a joint venture with well-known company or project in the same field.
The owner of a flourishing small business offering the strong possibility of continued rapid growth might face the dilemma of whether to maintain private ownership or create shares of stock to sell to the public. The decision is not one to be taken lightly, as becoming a public company is a complex, expensive and time-consuming process that significantly changes how the business operates. "Going public," though, can offer a number of important benefits.
The sooner the better, sinc it brings you more and more money
To my view, the right time for an enterpreneur to take his Company to public. ie. listing of the Stocks on any Reputed Exchages, is situational depending on the requirement of funds to be raised from the Public. Few intances of getting the Company Stock would be as follows:
1. Need of Funds to expand the Business: If in case the enterpreneur is not desirous to raise the funds from Private Equity, then it can go public, provided rest of the Business Fuctions are alligned for listing of Company shares. There has to be Complete Syncronosation of Buiness and Comoliance required for going Public. Further the right time would be when the Enterpreneur expects that there is good growth Story for the Company and that Growth Story would be more or less in accelaration mode year on year, which would lead to inctrease in the Price of the Company Stock thereby resulting in Wealth maximation of the Stakehoiolders.
2. Exit Opportunity either by Enterpreneur/ Existing Investor: In this situtaion, the right time would be where the valutions of his Company is just one notch below his expected Valutaion and he has aligned all the Busines Fuctions with Compliance required. In addition to this Common factor id Good Growth Story of the Company with consistent or accrealeated frowth of the Business as mentioned in the first point.
The right time to take a business public is after launch and there's need to expand and grow.
when the entrepreneur having enough capital
An entreprenur should have proven his business success already and have successfully and profitably done business for minimum 3 years, documented and audited.
Other than, reasonable market conditions is a preamble to consider as the general public will be investing into a business and there has to be more caution and care to avoid any unforeseen losses (in cas of failure of an IPO, ICO, ITO and IEO).
