Taking a Private Company Public: IPO Investor Mandate Interview
Taking a Business Public - IPO Investor Mandate Interview
Private equity investors, direct investors and company owners who want to understand how a listing can fit into valuation and exit planning.
In their words
"So that arbitrage is basically what our investors are all in there for."
"The ultimate goal is for us to take an asset, which is currently private, public on one of the major US or Canadian exchanges."
"Trying to see the path towards a potential exit is often something that people like to plan out before they pull the trigger."
What you will hear
Kyle leads a firm that takes private companies public on major US or Canadian exchanges. Along the way it also does pre-IPO and seed rounds. The pipeline spans Asia, Europe including Eastern Europe, and Latin America. The team is known for emerging market work, and it also handles a fair amount of US and Canada transactions.
The core idea is an arbitrage. A midsize emerging market company with potential EBITDA can have its deal negotiated at one multiple, and Kyle's view is that it may later trade at a different one in a US or Canadian market. Kyle says the company is open to a discount to listed comparables, which in his view helps the deal work for both sides. Richard adds that a possible listing matters when valuing a company and planning an exit.
On the record
- Kyle's firm aims to list companies on one of the major US or Canadian exchanges.
- Richard C. Richard says that out of the 80 investors interviewed, nobody else had talked about taking companies public.
- Kyle's core sectors are technology, natural resources such as oil and gas, mining, and financial services except banking.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Taking a Business Public - IPO Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around public listing requirements, offering documents and investor eligibility rules. Do not use AI to write your own legal agreements.
What to take from this talk
- Going public is the stated goal. Kyle's firm works with private assets and aims to list them on a major US or Canadian exchange. Pre-IPO and seed rounds are steps toward that goal.
- The multiple gap drives the deal. Kyle believes investors are drawn by a possible difference between the multiple negotiated for the private deal and the multiple the company might trade at once listed. He calls this arbitrage the reason investors take part, and outcomes are never guaranteed.
- Companies accept a discount. Kyle says the company understands a discount to publicly traded comparables is part of the deal. In his view that is why the deal is not too aggressive for the company.
- A private equity style deal, made public. Kyle describes the investor position as a very personalized private equity deal in public form, bought at a good price. With proper positioning, reporting and good news, he hopes to see the company grow significantly, though results vary and nothing is assured.
- Plan the exit before investing. Richard says the chance of going public is worth considering when valuing a company. Many people like to plan the path to a potential exit before they invest.
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What does Kyle's firm do?
It takes private assets public. It does pre-IPO and seed rounds with the aim of listing a company on one of the major US or Canadian exchanges.
Which regions and sectors does the firm cover?
The pipeline spans Asia, Europe including Eastern Europe, and Latin America, plus some US and Canada deals. Core sectors are technology, natural resources such as oil and gas, mining, and financial services except banking.
Why do investors like this type of deal?
Kyle points to a possible arbitrage between the multiple negotiated for the private deal and the multiple the company might trade at once listed. He describes it as a personalized private equity deal in public form at a good price.
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