when a company goes public it is the first time the general public has the ability to buy shares the process of going public presents unique challenges and is best accomplished with a knowledgeable and experienced team at the helm an important member of said team is an experienced securities lawyer however every member of the team has important responsibilities in guiding the company through the ipo process 
the mandatory sec s 1 filing does not necessarily include all previous financial information which is why it is imperative to do additional research prior to investing in an ipo 3requirements for going publicgoing public starts with a proposal to the company s board of directors by the management of the company the proposal includes details and discussion on the company s past performance objectives business plan and financial projections management then recommends entrance into the public market after careful consideration the board of directors decides whether to move forward upon approval management starts assembling the ipo team which usually starts with a securities lawyer and an accounting firm after approval the company s financial statements for the preceding five years are carefully reviewed and if necessary restated to comply with generally accepted accounting principles gaap certain transactions that are okay for private companies such as some sale leaseback arrangements are then eliminated and financial statements are adjusted accordingly the accounting firm takes the lead in this review and adjustment step 4now the company selects an investment bank and issues a letter of intent to formalize the relationship and outline the investment bank s fees offering size price ranges and other parameters 5with a signed letter of intent the securities lawyers and accountants prepare the prospectus a prospectus is written to present to investors as both a selling document and as a legal disclosure document a prospectus requires 67the company s investment bank and accountants will examine the company s management operations financial condition competitive position performance and business objectives and plan they also review the company s labor force suppliers customers and industry often the results of the due diligence investigation will necessitate changes to the prospectus 8a preliminary prospectus must be presented to the sec and the relevant stock market regulators state securities commissions may also be required to sign off the sec usually comments on the prospectus normally in the form of requirements for additional disclosure or explanation 9106after the preliminary prospectus has been filed with the sec the investment bank should assemble a syndicate of other investment banks which will attempt to sell portions of the offering to investors assembly of the syndicate often generates useful information that helps to narrow the share price range 1company management and investment bankers often perform a series of meetings with potential investors and analysts this roadshow is a formal presentation by management on the company s financial condition operations performance markets and products or services the potential investors and analysts then ask questions about the company 2the prospectus must be revised in accordance with the comments of the sec when the sec declares the registration effective the company can go to print with the prospectus 11the day before registration becomes effective and sales begin the offering is priced the investment banker will recommend a price for the company s approval taking into account company performance pricing of competitive offerings roadshow outcomes and general market and industry conditions the investment banker will also make recommendations on the size of the offering in consideration of capital required investor demand and control over the corporation 126an experienced financial printer which has sufficient printing capacity and is familiar with the sec s regulations regarding the use of graphics receives the final prospectus for expedited printing 13