5 Is your Company Ready to Go Public? Taking your company public – offering shares for sale to investors in the public markets – can be an effective and efficient way to raise capital and create liquidity, all to further your company’s growth and expansion. However, going public represents a major undertaking, and you and your team should carefully consider whether your company is ready. Your company may be ready to go public if it has a(n): • Established business with a track record • Strong management team • Growth prospects • Solid business plan • Financial and internal controls • Strong governance In particular, consider whether you can answer yes to the following questions: SECTOR Question Financing • Have other alternative financing sources been explored and/or exhausted? • Does your company need public financing for growth? Management • Are the key management positions filled? • Is your management team experienced and balanced? Does it include directors and senior executives with a proven track record in managing public companies? Business Plan • Is there a well-developed business plan that identifies potential revenue and income as well as the resources necessary to sustain growth and success? • Is your company prepared for the compliance and disclosure requirements that public companies are required to follow? Growth Potential • Is the market size for your company’s product or service sufficient to sustain the growth plans and expectations that will attract broad investor interest? • Is your company profitable, or has its product reached commercialization with evidence of market acceptance? • At the time of listing or on completion of the Initial Public Offering (IPO), will your company have sufficient working capital to carry out its business plan? • Does the company see an opportunity to enhance organic growth with acquisition opportunities utilizing its share capital? Early days Companies considering listing are encouraged to consult with the Business Development Team at TMX. Contact details can be found at the end of this guide or visit www.tsx.com/listings/contact-us
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