How does a private company go public? What is the process and requirements? Is there a set amount of profit that a company has to make before going public?

Question

How does a private company go public? What is the process and requirements? Is there a set amount of profit that a company has to make before going public?

In: 95

Answer 1

There are reporting requirements (P&L, EBITDA, Liabilities and Assests and such) with the SEC, usually people (controllers, CFO, CEO, etc…) with experience in the IPO process are needed in those positions to provide credibility.

At least that was my experience working for a company that was intent on going public (the great recession arrived and the company went bankrupt instead and my “options” as an employee became worthless).