Copyright © 2001, Simplex Solutions, Inc. 1 Going Public Whether and How Penny Herscher October 3, 2001
Copyright © 2001, Simplex Solutions, Inc. 2 Simplex story End in mind IPO Checklist Preparing Going public Follow up – life as a public company
Copyright © 2001, Simplex Solutions, Inc. 3 Simplex story 9596 Company Founded with VC $ CEO hired 01 IPO Announce 2 nd major technology platform st product ships Mainstream version of 1 st product family Ahead of the market 00 Acquire Altius & File S-1 (on the same day) Acquire Snaketech Market rapidly growing
Copyright © 2001, Simplex Solutions, Inc. 4 Results so far… Simplex Revenue June qtr
Copyright © 2001, Simplex Solutions, Inc. 5 End in mind Three choices –Technology – to be acquired –Product – grow revenue, then be acquired –Company – built to last, multiple product lines Drives all other subsequent decisions –All money is not equal –People investment –Strategy –Risk / reward profile Drives investment in infrastructure –Channel, financial systems, HR systems etc. IPO is not the end in mind –Funding step along the way
Copyright © 2001, Simplex Solutions, Inc. 6 IPO Checklist People –Executive team in place –Board in place –Motivation understood –CEO/CFO bandwidth Business –Backlog and visibility excellent –Customer reference strong –Product strength –Business model established –Channel in place Strategy –Vision, mission, purpose –Long term growth plan –Allies behind you Process –Finance processes in place –Stock admin in place –HR processes in place
Copyright © 2001, Simplex Solutions, Inc. 7 Select bankers –Quality analyst coverage –Banker experience in EDA –Banking relationships Preparing
Copyright © 2001, Simplex Solutions, Inc. 8 File -> Final filing –Be prepared to spend time –Time, time, time –Better like your lawyers Preparing Draft Review File SEC Comments Develop roadshow pitch –Looks and legs –Clear message –Practice, practice, practice Get in shape
Copyright © 2001, Simplex Solutions, Inc. 9 Market and Price Valuation and liquidity –Agree on final range –Agree on quantity of stock –Follow your bankers advice Market your stock –2-3 weeks –60-70 meetings –Tune your message –Keep your board and executive team informed Price –Understand order level and after market demand –Don’t get greedy
Copyright © 2001, Simplex Solutions, Inc. 10 Follow up Volatility –Prepare your employees Support Regulation FD Focus on the long term –Execute –Keep the long term in front of your people
Copyright © 2001, Simplex Solutions, Inc. 11 Be clear on the End in Mind for your company IPO is not the End in Mind Listen to your bankers Don’t get greedy