IPO University

As part of the process of taking a company public, the investment bankers and lawyers for the underwriters conduct an in-depth examination of the proposed IPO. They speak with management about the company’s prospects, strategy, competitors and financial statements. Information that is material to the company’s prospects must be disclosed in the prospectus. The lead manager on an IPO is often viewed as providing an implicit endorsement of the deal, based on their reputation and due diligence.