IPO Investing - IPO Information - IPO Investment Tips - Read This First | The Communication Blog

Tuesday, December 28, 2010

IPO Investing - IPO Information - IPO Investment Tips - Read This First

By James Scott


When investing in an IPO or Pre IPO there are several things to keep in mind. Crucial elements to the success of the company and a better return on your investment are the company's board of directors, C level executives and the professional pedigree that each brings into the company and the portfolio of contacts they are ready to place into action.

Next examine the globalization and expansion plan the company has laid out in the prospectus. Are they affiliated with strong strategic alliances? Have they identified potential mergers and acquisitions to expedite growth, raise the company profile and attract larger opportunities? Are the C level executives considered experts in the field in which the company resides? Have they been published in journals and/or involved in any landmark transactions that make them a true 'player' in their particular industry niche?

Do they have any open or potential lawsuits or legal battles in their history or future? For their post public survival find out how much stock is going to be put on the street for public consumption and what type of financing do they have set up for their company to inject rocket fuel into their growth model?

What kind of inner and outer industry alliances have they formed to make claiming their place at the top of the food chain quicker and easier? Do they have a publicist? If so, what type of successes has the publicist or PR agent had with companies in this particular position and in this specific industry genre?

Who is the consulting firm behind them calling the shots on their IPO? Are they including legislative introductions for Bill inclusion and photo opportunities with political figures to add slabs of legitimacy to the company's agenda? From a globalization perspective who is spearheading this initiative? Do they have international consultants at the helm guiding them through the process and introducing them to the true players to limit any delay to their internationalization agenda?

An investment in a company is based off of the company's market and industry position, leadership, alliances and information mechanisms for ultimate investor relations information distribution and assimilation. Never invest in a company unless you have a clear understanding of the above.




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