Although a perfect trend line is optimal, it certainly isn t always necessary. In the final analysis, the critical success factor is not short-term earnings, but rather the ability to sustain your financial performance over the long term. Underwriters and investors will carefully consider size, growth, and profitability in evaluating your company. But weakness in any of these areas will not necessarily preclude a public offering. The single issue on which underwriters and investors rarely will compromise is management strength.
Strong management translates into the most important intangible element investor confidence.
Now is the time for your senior executives to analyze whether they can comfortably adjust to the public s scrutiny of the company s actions.