THE IPO PLAYBOOK

An expert delivers advice on how to launch an IPO in this debut guide.

With a strong insider’s perspective, Cakebread, the CFO of Yext, examines IPOs up, down, and every which way. His advice starts at a critical juncture that enthusiastic entrepreneurs may overlook, sometimes to their regret. The author posits that while an IPO is the best long-term strategy for most companies, that’s not true for all of them. He outlines the variables that should factor into a decision to go public. He draws from his experiences and the lessons he learned in leading three startup tech companies to successful IPOs (Pandora, Yext, and Salesforce). He explains why going public in 2017 was the most important step in transforming Yext from a fledgling company to the nearly $2.3 billion behemoth it is today. Business owners who decide on an IPO will find a useful toolbox and instruction manual here. As the title promises, this is a playbook rather than a staid text. Cakebread lays out step by step the actions that will lead to the formation of a winning IPO and cautions about traps to watch out for. Some are surprising: “Along the way, you suddenly realize that the only difference between an IPO road show and your prior rounds of venture funding is that now some of the people you are meeting are potential enemies.” Before going public, he says, if a venture capitalist didn’t like an offering, he simply walked away. But in the public markets, “people are looking not just to bet on you, but perhaps to bet against you.” Few books examine the IPO model from all angles. Cakebread’s wide-ranging analysis uses bullet points and questions to prompt readers into honest assessments. At one point, he asks: “Is the company ready to make the investments in time and money to prepare itself to go public?” The author stresses the importance of creating chemistry in the company’s management. Time is a crucial factor, and Cakebread is a stickler about it. He tells readers that if a recruiter says a company is planning an IPO in less than nine months, it’s a red flag to “run away” because it takes a minimum of 18 months to prepare for one. The appendix includes every deadline needed to offer an IPO and keep it successful.

Entrepreneurs who envision going public will find value on every page.