 |
|
|
|||||
For many private companies, going public is a long-term goal that leaders want to get just right. When considering an approach to the public market, there is so much work to do at so many levelsfrom equity awards and compensation plan design to tax planning, from liquidity and trading strategies to planning for business as usual before and after a transition. Whether your company is three months, three years, or three decades into its strategy, the question is: Where are you in your trajectoryand are you heading in the right direction? Lets walk through three essential equity plan management considerations to weigh and discuss with your providers along with any move toward the public space: 1. Is your company currently positioned for private or public markets? The private market is growing across venture capital, private credit, private real estate, infrastructure investments, and the equity and debt of privately owned companies, with assets under management up roughly 20% per year since 2018. In fact, with global IPO volume rising, stalling, and reopening in 2025, we still often see later-stage private companies waiting longer to go public. As you weigh the timing and choices for your company, focus on key goals and consider what your company would look like in the public market. Map out all the pros and cons of a transition. For example, an IPO can potentially provide significant capital infusion while offering liquidity options for early investors, equity holders and employees. However, an IPO also means companies must be ready to navigate complex regulatory requirements and increased scrutiny from investors and analysts, which can be both time-consuming and costly. Meanwhile, by remaining private, companies may have more freedom from the pressure to meet shareholder expectations and can focus more on long-term strategy. Whatever path you choose, private or public, remember that its never possible to time the market to know exactly when an IPO would make the biggest splash. What is possibleand essentialis to control your transaction-readiness by implementing the right platform and stock plan administration practices while your company is still private. 2. Do you have the right systems in place? Preparing for complex transactions like a liquidity event or IPO takes a significant amount of planning, so look for opportunities to implement systems that can help you scale effectively and hit the ground running. It can help to have a plan for scaling infrastructure, processes, data practices, and platforms before your company needs them. In fact, mirroring the operations of public company stock plan administration cycles can potentially help reduce friction and errors when a transaction is on the horizon. Give yourself enough time to build solid governance procedures and establish working relationships with trusted providers so you can execute effectively in changing environments. Picture what things should look like or your companys stock program three to five years from now, and whether your current systems can get you there. A smooth IPO would require seamless integration for systems and processes to align and automate equity compensation, financial reporting, and compliance. For instance, stock plan administration should be fully integrated with payroll and HR systems, allowing for real-time data flow and minimizing manual interventions. An IPO-ready system would have automated data feeds, robust audit and reconciliation procedures, and a comprehensive calendar of deadlines that all stakeholders can see. It would also include a well-defined process for grant approvals and participant communications, leveraging technology to deliver educational resources and updates. The goal is to help capture equity transactions accurately in financial reports and maintain tax compliance across all jurisdictions. Build the infrastructure as well as clear communication channels. Conversely, a system that is not IPO-ready would rely heavily on manual data entry, lack integration between key systems, and have inconsistent or incomplete data, leading to potential reporting errors and compliance issues. Disorganized financial records, unclear strategic direction, and inadequate internal controls can cause roadblocks. 3. Are your people prepared? An IPO can also introduce new financial opportunities and challenges that affect staffing, whether its changes in leadership or challenges maintaining talent continuity. Beyond creating new roles and responsibilities to manage increased regulatory and reporting requirements, an IPO transition can also lead to changes in compensation structuressuch as the introduction of stock options and equity plans, which require specialized administrative support and expertise. The influx of capital from a liquidity event can also lead to rapid expansion and the need for additional staffingwhich, in turn, can affect company culture. On top of this, employees who hold stock options or shares may experience a substantial increase in personal wealth, which can affect their stress levels, motivation, and career decisions. Plan ahead and invest in robust equity education programs and access to financial support to help your talent navigate their experience. Your equity plan can help tie awards for leaders to strategic company goals, provide vesting schedules to encourage longevity, and provide employees with a sense of ownership in your companys next stages of growth. Whatever you do, involve employees in your company’s vision and keep communication open. Especially during transitions in leadership or preparing for a major event like an IPO, its important for employees to have a clear understanding of how their ownership stake in the company is affected and what it might mean for their future. Employees will also require different support as your company growsfor example, equity recipients may need access to subject matter expertise as they navigate new stock plan steps, rules, and regulations that can affect their personal financial choices. Employees may be subject to lock-up periods or restricted by insider trading rules, as well as company-specific agreements that further limit executive stock sales. Make sure to develop employee communications that share available information appropriately about the timing, structure, and nature of the upcoming transaction, as well as where they can find additional guidance and support. Before implementing new strategies with respect to their company shares, executives and other insiders may benefit from working with an equity planning specialist who can make tailored recommendations for their unique situation. Ultimately, the decision to remain private or pursue an IPO is about what makes the most sense for your individual company, how you want it to grow, and what infrastructure you can arrange to help support the next phase. In defining what a successful IPO would mean for your company, remember the equity plan experience.
Category:
E-Commerce
Rare aesthetic: romanticizing childhood memories you thought were unique, only to realize theyre universal. A new TikTok trend has users posting nostalgia-laced memories of mundane but oddly specific childhood moments, ironically tagged as rare aesthetic. The clips are often set to the track “Gorof (Elixir) (feat. Sahra Dawho)” by Somali disco legends Dur-Dur Band. One example: Rare aesthetic: going to swimming lessons and being jealous of your mum sitting in the cafe, a TikTok user posted, alongside stock images of a swimming pool and its adjoining cafe. @laurenzopotenzo Hope this dont flop #fyp #rareaesthetic #foryou #trend Gorof (Elixir) (feat. Sahra Dawo) – Dur Dur Band If that stirs something in you, youre not alone. The post has racked up more than two million likes and over 10 million views. Why is it so specific and why do I also have this memory, one person asked. “Does anyone remember how good the taste of crisps was after youve been swimming or just me,” a second person wrote. These cafes were so comforting, the smell of coffee beans and cookies and hint of chlorine, added another. Other memories have gone similarly viral. Nearly 900,000 users engaged with a TikTok post about waking up at dawn to travel to the airport. There was always this certain smell that I cant describe in the air on those mornings, one person commented. And its always so cold, said another. And for some reason you always feel nauseous, added another. Turns out, we all felt this. @flopically.bojayna Most eerie but best feeling ever #foryoupage #rareaesthetic #trend original sound – maphinz love child Nostalgia is saturating culture right now, from movie reboots and music to viral TikTok trends. More than 60% of Americans report feeling nostalgic right now, per CivicScience data. Research published in Psychology of Popular Media also finds that people consume more nostalgia-inducing media during times of crisis Rather than a pull to reflect on personal memories, nostalgia has instead become a communal experience. One that people participate in via trends, helping to combat loneliness and be transported to a time when the biggest worry was which movie to pick out at Blockbuster that week. Some social media accounts lean on AI-generated scenes to spark those feelings of longing. Others simply resurface innocuous childhood moments and frame them through rose-tinted glasses. Rare aesthetic: School mornings during winter, another post reads. The slideshow shows damp streets lit by streetlights before sunrise, a cold drizzle in the air, and kids trudging to school. Low-key miss it, one person wrote.
Category:
E-Commerce
TikToks U.S. operations would be controlled by an investor consortium including Oracle, Silver Lake, and Andreessen Horowitz, under a framework the U.S. and China are finalizing, The Wall Street Journal reported on Tuesday, citing people familiar with the matter. A new company will be created to operate TikTok, with U.S. investors holding a roughly 80% stake and Chinese shareholders owning the rest, the report said. The company would also have an American-dominated board, with one member designated by the U.S. government. Current users of the app will be asked to shift to a new app, which TikTok has built and is testing, the newspaper reported. Reuters had reported in July that TikTok was preparing to launch a stand-alone app for U.S. users, which was expected to operate on a separate algorithm and data system from its global app. Oracle would handle user data at its facilities in Texas, The Wall Street Journal said, adding that while the U.S. and China are still working on the details of the potential deal, the terms may change. TikTok, Oracle, Silver Lake, and Andreessen Horowitzthe latter also known as “a16z”did not immediately respond to Reuters requests for comments. U.S. President Donald Trump on Tuesday signed an executive order delaying the enforcement of a 2024 law requiring the divestiture of Chinese ownership of TikTok until December 16. Earlier in the day, he also announced an agreement between the U.S. and China to keep TikTok operating in the United States. By Juby Babu, Reuters
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||