What role does an equity story play in IPO success? How can companies craft a compelling one?
Carsten Gerger: Your equity story is the foundation of your IPO. It’s the narrative that convinces investors why they should believe in your company’s future. A weak or unclear story makes it difficult to attract the right investors, and without a compelling case, your IPO might struggle to generate interest.
A strong equity story clearly defines the market opportunity – what problem your company solves and how large the potential market is. It should outline the key drivers of your growth, demonstrating how scalable and sustainable your business model is over time. Investors also want to understand your financial trajectory, meaning you need to connect past performance with realistic, data-backed projections. Finally, it’s essential to highlight your competitive edge. What makes your company unique? Why should investors choose you over other opportunities in the market?
Ultimately, investors seek clarity, not hype. They want to see a well-structured, data-driven story that aligns with your financials and business strategy. Overpromising can be dangerous – if you set unrealistic expectations and fail to meet them post-IPO, trust erodes quickly. The best equity stories balance ambition with credibility, giving investors confidence in both your vision and your ability to execute it.
When is the right time to go public and what is most important for investors?
Timing is critical for an IPO. How can companies determine the right moment to go public?
Carsten Gerger: Market conditions can make or break an IPO. You want to enter the market at a time when investor sentiment is strong, your industry is performing well, and macroeconomic factors are favorable.
But beyond external factors, internal readiness is key. I’ve seen companies rush into IPOs before they’re fully prepared, and that can lead to major issues post-listing. If you’re not confident in your financials, governance, or forecasting ability, it’s better to wait.
Investor expectations are higher than ever. What do they look for in IPO candidates?
Carsten Gerger: Investors want growth potential, financial discipline, and strong leadership. Here’s what they typically evaluate:
- Scalability – Is your business model built for long-term growth?
- Predictability – Can you deliver consistent revenue and earnings growth?
- Leadership & Governance – Does your management team have the expertise to execute your strategy?
- ESG compliance – Investors increasingly care about Environmental, Social, and Governance factors. Strong ESG reporting can enhance credibility.
Transparency is non-negotiable. If your financials are disorganized or inconsistent, investors will walk away.
Top IPO challenges and how to overcome them
What are the biggest financial challenges companies face during IPO preparation?
Carsten Gerger: The sheer complexity of financial processes is one of the biggest hurdles. Suddenly, your company must meet quarterly reporting standards, comply with strict audit requirements, and provide transparent investor disclosures.
One of the most significant challenges is financial consolidation. Public companies must report accurate and timely financial statements, but if an organization has multiple subsidiaries across different regions, consolidating financial data efficiently can become a major bottleneck. Additionally, financial predictability becomes critical. Investors expect clear, data-backed financial projections, and companies must develop dynamic forecasting models that can adjust to market fluctuations in real time. Having the right planning tools to seamlessly update forecasts and scenario analyses is essential to meeting investor expectations.
Cash flow management also takes on a new level of importance post-IPO. Investors closely monitor liquidity, burn rates, and profitability metrics, expecting companies to demonstrate financial discipline and sustainable growth.
Without the right technology in place to automate and streamline these processes, managing financial complexities at a public company level can quickly become overwhelming.
Speaking of technology, how can CFOs use digital tools to streamline the IPO process?
Carsten Gerger: Technology is a game-changer for IPO readiness. The companies that struggle the most are often the ones relying on spreadsheets and outdated systems to handle consolidation, planning, and reporting.
Companies using integrated financial platforms enter the IPO process with far greater confidence.
Any final advice for companies preparing for an IPO?
Carsten Gerger: Start early. Even if your IPO is one to three years away, begin optimizing your financial processes now. Get your reporting structure in place, stress-test your forecasts, and invest in technology that ensures accuracy and efficiency.
The IPO journey is challenging, but with the right preparation and strategic approach, it’s an opportunity to transform your business for long-term success.
Are you IPO-ready? Find out in our free guide
An IPO is a defining moment for any company, but success depends on more than just strong financial performance. As Carsten Gerger points out, companies that take a structured approach – building a solid financial foundation, crafting a compelling equity story, and leveraging the right technology – are in a much stronger position for success.
If your company is considering going public, now is the time to assess your readiness and ensure your processes are built to scale. Our comprehensive IPO guide walks you through the key steps of the process, from financial preparation to investor expectations. Download the infoguide today and take the first step toward a successful IPO.
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