1. In general, what attributes make a company a good candidate for an IPO?

While researching the internet for facts and information about what attributes make a company a good candidate for an IPO, I found an article on E-commerce that explained some facts and attributes. First, I found out some basics facts such as, a company doesn't have to have a particular level of sales and/or a consistent record of earning/cash flow to execute a successful IPO. It was interesting to find out that it isn't what your company "has" done, but more or "what" your company will do. If management's story is worth listening to, then maybe they can convince the market, that they know where they are headed, and they know how to get there. This can be done by hiring public firms to promote the new stock, and to keep investors informed of the vision that management envisions.

However, I did find that a company should have one of two specific qualities in order to launch a successful public offering. First, if a company has been able to solidify its entry into the industry by differentiating its product/service, then it will be more likely to survive the negative changes happening within that industry, due to the fact that they are insulated because of their unique segment to which makes their product attractive. If a company can find a way to show its attractiveness to a more narrow segment, then it will less to lose in a time of violent change in the industry.

The other quality is Industry Fragmentation, which happens in an industry when there are a larger number of smaller players. There is not much consolidation going on and there are no specific companies that dominate the industry. For example, if a company can find ways to acquire other companies in the same industry, then it can decrease the overhead costs such as salaries and payroll costs, while increasing volume and