Should our client do an IPO?

IPO
Recent activity on Feb 19, 2019
1 Answer
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Anonymous A asked on Feb 18, 2019

I am trying to create frameworks for non-conventional business cases. An example being asked for a final round BCG interview was the following.

Our client X wants to considere whether to do or not an IPO. How would you go about advising him? Should they do the IPO or not?

Despite the business characteristics, what are the key elements of your issue tree for this kind of case and why?

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Vlad
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replied on Feb 19, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

I would consider valuation and timing (i.e. at what point it will be fair and is it the right timing now), current financial needs and the cost of capital (you would be surprised but for the IPO it's pretty high). However, this case is very financial and I doubt you'll have it unless you are applying for M&A / DD practice

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Vlad

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