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How to Take a Company Public: A Beginner’s Guide
By Creative Loafing Charlotte
Going public — taking your company from private ownership to the stock market — is one of the most powerful moves a business can make. It can unlock millions (or billions) in capital, elevate your brand, and allow early founders and investors to cash out. But the process is also complex and often misunderstood.
Here’s a beginner’s guide that breaks it all down.
What Does “Going Public” Mean?
Taking a company public means offering its shares to the general public through a stock exchange like the New York Stock Exchange (NYSE) or NASDAQ. This is done via an Initial Public Offering (IPO) — a legal and financial process where your business becomes a publicly traded entity.
Why Go Public?
Here are a few reasons companies go public:
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Raise Capital: Sell shares to fund expansion, pay off debt, or invest in R&D.
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Liquidity for Founders & Investors: Early backers can cash out.
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Publicity & Prestige: A public company earns more attention, trust, and press.
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Stock for Acquisitions: Use your shares as currency to acquire other businesses.
Step-by-Step: How to Take a Company Public
1. Build a Strong Business
Before thinking about the stock market, you need:
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$100M+ revenue (ideal for traditional IPOs, though exceptions exist)
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Strong growth, leadership, and brand recognition
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Clean financial records
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Solid team and operations
2. Hire an Investment Bank (Underwriter)
You’ll need a Wall Street investment bank to underwrite the IPO. They:
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Help you determine the company’s valuation
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Assist with regulatory filings
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Pitch your company to institutional investors
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Help decide your IPO price and number of shares
Examples: Goldman Sachs, Morgan Stanley, JPMorgan.
3. Prepare Financials & Go Through Audits
Public companies must disclose their finances. That means:
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2–3 years of audited financials
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GAAP-compliant accounting
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Strong internal controls
Most companies hire a Big Four accounting firm (PwC, EY, KPMG, Deloitte).
4. File with the SEC (Securities & Exchange Commission)
You’ll need to submit an S-1 Registration Statement, which includes:
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Company history
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Business model
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Risk factors
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Financials
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Use of funds
This is reviewed by the SEC and may take weeks or months.
5. Roadshow & Pricing
Your underwriters take you on a "roadshow" — presenting your company to big investors to generate interest. After this, you:
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Set the IPO price (share price)
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Choose how many shares to offer
6. Launch Day: IPO!
On IPO day, your shares go live on the stock exchange. If all goes well, your stock price jumps, raising millions for the company and its shareholders.
Alternatives to a Traditional IPO
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SPAC (Special Purpose Acquisition Company): Go public by merging with a public shell company.
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Direct Listing: Skip the IPO process and list shares directly on the exchange.
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Reg A+ Offering: A lighter, more flexible route for small and mid-sized businesses.
Things to Watch Out For
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Loss of Control: Founders may lose voting power or face pressure from shareholders.
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Heavy Regulation: Public companies face strict ongoing reporting requirements.
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Market Pressure: You’ll be judged quarterly — which can distract from long-term vision.
Final Thoughts
Taking your company public is a milestone few achieve — and one that can change your life. But it’s not for everyone. Before pursuing an IPO, make sure you’ve built a company with strong fundamentals, a compelling story, and the discipline to handle the spotlight.
If you’re a local founder in Charlotte thinking about scaling big — whether through IPO or private equity — the journey starts with education, advisors, and clarity.
And hey — maybe one day we'll see a CLT-born unicorn lighting up the NASDAQ.
For more local business stories, follow Creative Loafing Charlotte at CLCLT.com.
