Should You Take Your Company Public Now or Wait?
A Founder's Guide to IPO Timing & Alternatives

Welcome to the PublicFinancial.com  IPO Knowledge Hub Series


This article addresses one of the most critical founder questions: “Is now the right time to take my company public, or should we wait—or even consider other options?”


Why Timing Matters More Than Most Founders Realize

Taking your company public isn’t just a financial decision — it’s a timing game that balances market conditions, company readiness, investor appetite, and your long-term vision. Even great companies can stumble if they misjudge the IPO window.

Key Founder Questions About IPO Timing


1️⃣ Is going public the right move for us at this stage?


Ask yourself: What problem are we solving by going public? Is it:

  • Raising growth capital?
  • Providing liquidity to early investors or employees?
  • Enhancing credibility with customers, partners, or lenders?


If you can’t clearly articulate the “why,” you’re not ready.

2️⃣ Why are we considering an IPO or direct listing now?

Market euphoria or peer pressure is a poor reason. A compelling reason would be:

  • Strong, predictable revenue growth.
  • Clear demand from potential public investors.
  • Business milestones achieved (e.g., profitability or path to profitability).

3️⃣ Should we wait for better market conditions?


Consider:

  • Market trends: Are public tech stocks or companies in your sector thriving?
  • Investor sentiment: Are IPOs being received warmly, or are recent IPOs trading below their offering prices?
  • Interest rates and macroeconomics: Rising rates often dampen IPO enthusiasm.

4️⃣ When is the “right time” for our company?

Most successful IPO candidates:

  • Generate $10M+ in annual revenue (though this varies by industry).
  • Have clear visibility into future earnings.
  • Have addressed financial, legal, and governance readiness (or have a plan to).

Pro Tip:  Timing should be driven by company fundamentals first, market conditions second.

5️⃣ If we start and conditions change, can we postpone or withdraw?


Yes — but with caveats.

  • Pre-filing: You can pause at any time.
  • Post-filing (public): Withdrawing can signal weakness unless carefully managed.
  • Costs: Legal, accounting, and advisory fees already incurred may not be recoverable.


Five Alternatives to Going Public by IPO Now

✔ Direct Listing


A direct listing allows a company to go public without raising capital at the time of listing, and without using an investment bank to underwrite the transaction.

You can:

  • Become a public company without immediate dilution.
  • Create liquidity for existing shareholders.
  • Enhance visibility, acquisition leverage, and long-term valuation.


Ideal for companies that have access to capital from private placements or want to use public structure primarily as a growth tool—rather than as a fundraising event.


✔ Reverse Merger


A reverse merger allows a private company to become public by merging into an existing public entity (often a clean shell), bypassing the traditional IPO process.


You can:


  • Go public faster—often in 4 to 6 months.
  • Control timing and terms more tightly than with an IPO.
  • Use public company status to support acquisitions, raise capital, and increase visibility.


Often used by companies that want to move quickly, time the market, or gain the advantages of being public without relying on underwriters or a large capital raise upfront.

✔ Stay Private & Scale


Many companies stay private longer than in past decades. You can:

  • Raise additional private capital.
  • Pursue strategic partnerships.
  • Delay IPO until the company and market are aligned.


✔ Explore Private Equity or Growth Equity


If liquidity or capital is the primary goal, a private equity partnership can:

  • Provide capital without the burdens of public markets.
  • Offer operational support and industry expertise.


✔ Dual-Track Process


Prepare for an IPO and court potential acquirers.

  • Keeps all options open.
  • Often enhances IPO valuation because it shows public investors that strategic buyers are interested.


Final Thought


Going public isn’t a milestone — it’s a means to an end. The right time is when your company’s needs, market opportunity, and investor appetite all align.

If they don’t yet align, the best strategy may be patience and preparation.


Next Step: Assess Your IPO Readiness

Ready to find out if your company is IPO-ready — or what steps to take to get there? Explore our IPO Readiness Assessment or contact PublicFinancial.com for a personalized evaluation.