Key considerations include:
- Do they understand the business?
- Do they get why you are unique? Can they also effectively and passionately sell your business?
- Reputation and Experience.
- How many IPOs have they done in this space? Have they had any failed deals? How would the bank propose to market the deal, and have they “tested the waters” (solicitation of interest prior to a registered public offering)?
- Quality of the Team.
- Is there a personality fit? Who, specifically, is going to be running the process?
- Relationships.
- They matter.
- Will the underwriter work harder for you because you or one of your stockholders has an important relationship with the bank?
- What is the commitment of senior management and other groups beyond the IPO origination team?
- Post IPO Support.
- What is the track record of each potential underwriter in achieving secondary transactions and follow-on offerings, including during the lock-up period?
- What is the track record of each potential underwriter’s research analysts in maintaining research coverage on covered companies over time?