Status quo to IPO: Ways to raise equity capital for your company

This article, by the managing director of NationsBanc Montgomery Securities , parses the steps for getting working capital or cold, hard cash for your training firm. He says that the market has never been hotter, but first you need a few facts and tools. Gay details the pros and cons of the main options for raising equity capita l or selling your business: status quo, private minority investment, public minority investment (an IPO), and majority investment. The tips include ho w to work with outside investors, financial analysts, and bankers-what to e xpect from them and what kind of information about your business you need t o provide to them. Gay outlines what he calls the three "cardinal rules" of initial public off erings: 1) Be prepared to under-promise and over-deliver on a quarterly bas is, 2) consider the size of your company, and 3) recognize that market valu e is based on projected earnings. The article includes a glossary of financial terms you'll need to know, and a sidebar, So You Want to Sell Your Company, with the step-by-step process . Gay cautions in particular that bringing in outside investors is not for ev eryone, especially if you don't agree and can't comply with the cardinal ru les. He concludes the article with a caveat emptor, strongly recommending t hat you should seek the services of a qualified financial advisor or invest ment banking professional before going ahead.