For many private companies, going public is a long-term goal that leaders want to get just right.
When considering an approach to the public market, there is so much work to do at so many levels—from equity awards and compensation plan design to tax planning, from liquidity and trading strategies to planning for “business as usual” before and after a transition.
Whether your company is three months, three years, or three decades into its strategy, the question is: Where are you in your trajectory—and are you heading in the right direction?
Let’s walk through three essential equity plan management considerations to weigh and discuss with your providers along with any move toward the public space:
1. Is your company currently positioned for private or public markets?
The private market is growing across venture capital, private credit, private real estate, infrastructure investments, and the equity and debt of privately owned companies, with assets under management up roughly 20% per year since 2018.
In fact, with global IPO volume rising, stalling, and reopening in 2025, we still often see later-stage private companies waiting longer to go public. As you weigh the timing and choices for your company, focus on key goals and consider what your company would look like in the public market. Map out all the pros and cons of a transition.
For example, an IPO can potentially provide significant capital infusion while offering liquidity options for early investors, equity holders and employees. However, an IPO also means companies must be ready to navigate complex regulatory requirements and increased scrutiny from investors and analysts, which can be both time-consuming and costly.
Meanwhile, by remaining private, companies may have more freedom from the pressure to meet shareholder expectations and can focus more on long-term strategy.
Whatever path you choose, private or public, remember that it’s never possible to time the market to know exactly when an IPO would make the biggest splash. What is possible—and essential—is to control your “transaction-readiness” by implementing the right platform and stock plan administration practices while your company is still private.
2. Do you have the right systems in place?
Preparing for complex transactions like a liquidity event or IPO takes a significant amount of planning, so look for opportunities to implement systems that can help you scale effectively and hit the ground running. It can help to have a plan for scaling infrastructure, processes, data practices, and platforms before your company needs them. In fact, mirroring the operations of public company stock plan administration cycles can potentially help reduce friction and errors when a transaction is on the horizon. Give yourself enough time to build solid governance procedures and establish working relationships with trusted providers so you can execute effectively in changing environments.
Picture what things should look like or your company’s stock program three to five years from now, and whether your current systems can get you there. A smooth IPO would require seamless integration for systems and processes to align and automate equity compensation, financial reporting, and compliance.
For instance, stock plan administration should be fully integrated with payroll and HR systems, allowing for real-time data flow and minimizing manual interventions. An IPO-ready system would have automated data feeds, robust audit and reconciliation procedures, and a comprehensive calendar of deadlines that all stakeholders can see.
It would also include a well-defined process for grant approvals and participant communications, leveraging technology to deliver educational resources and updates. The goal is to help capture equity transactions accurately in financial reports and maintain tax compliance across all jurisdictions. Build the infrastructure as well as clear communication channels.
Conversely, a system that is not IPO-ready would rely heavily on manual data entry, lack integration between key systems, and have inconsistent or incomplete data, leading to potential reporting errors and compliance issues. Disorganized financial records, unclear strategic direction, and inadequate internal controls can cause roadblocks.
3. Are your people prepared?
An IPO can also introduce new financial opportunities and challenges that affect staffing, whether it’s changes in leadership or challenges maintaining talent continuity.
Beyond creating new roles and responsibilities to manage increased regulatory and reporting requirements, an IPO transition can also lead to changes in compensation structures—such as the introduction of stock options and equity plans, which require specialized administrative support and expertise. The influx of capital from a liquidity event can also lead to rapid expansion and the need for additional staffing—which, in turn, can affect company culture.
On top of this, employees who hold stock options or shares may experience a substantial increase in personal wealth, which can affect their stress levels, motivation, and career decisions. Plan ahead and invest in robust equity education programs and access to financial support to help your talent navigate their experience. Your equity plan can help tie awards for leaders to strategic company goals, provide vesting schedules to encourage longevity, and provide employees with a sense of ownership in your company’s next stages of growth.
Whatever you do, involve employees in your company’s vision and keep communication open. Especially during transitions in leadership or preparing for a major event like an IPO, it’s important for employees to have a clear understanding of how their ownership stake in the company is affected and what it might mean for their future.
Employees will also require different support as your company grows—for example, equity recipients may need access to subject matter expertise as they navigate new stock plan steps, rules, and regulations that can affect their personal financial choices. Employees may be subject to lock-up periods or restricted by insider trading rules, as well as company-specific agreements that further limit executive stock sales. Make sure to develop employee communications that share available information appropriately about the timing, structure, and nature of the upcoming transaction, as well as where they can find additional guidance and support.
Before implementing new strategies with respect to their company shares, executives and other insiders may benefit from working with an equity planning specialist who can make tailored recommendations for their unique situation.
Ultimately, the decision to remain private or pursue an IPO is about what makes the most sense for your individual company, how you want it to grow, and what infrastructure you can arrange to help support the next phase.
In defining what a successful IPO would mean for your company, remember the equity plan experience.