In this Weekend Update
Quincy invites you to our Battle of the Bands
Britton Gallagher gives advice for indemnification and advancement provisions
PwC gets you ready for an IPO with their IPO Readiness Seminar
Celebrate the Coming of Fall at ATC's Battle of the Tech Bands!
There is no mistaking it - fall is just around the corner! Gone are the days where we sweat for no good reason, cower in fear from the blistering Texas rays, and apply sun block as if it were our life blood. This, my dear friends, is reason to celebrate, and to celebrate we shall!
Join ATC as we host our annual event, Battle of the Tech Bands! Each year, we welcome bands from our member companies to work the stage in hopes of earning the glory and bragging rights that go along with being the Battle Champion (not to mention cool prizes!). Come early to job hunt and network at Built In's Start Up Connect, then stay the evening to holler for your favorite band. Dance, drink, and be merry alongside your fellow ATC members and Austinites!
Not an ATC member but want to compete? Let us know and we can walk you through how to join the ATC membership! Want to hang out and enjoy the music? Register for the event below. This is not one you'll want to miss!
Why Corporate Executives Should Have a Separate Written Indemnification Agreement
Most companies’ corporate bylaws or articles of incorporation contain indemnification and advancement provisions. While these provisions provide important protection for corporate executives if the individuals become the target of claims relating to their action undertaken in their corporate capacities, these provisions alone may not be provide sufficient protection.
For these and many other reasons, well-advised corporate executives will want to have their rights memorialized in a separate, written indemnification and advancement agreement with the company.
So You're Going Public?
Larry Westall, PwC Partner
In Q2’16, we saw a slight uptick in Austin’s venture capital funding as compared to Q1’16. Nationally, the number of venture-backed IPOs rebounded in Q2’16 with twelve, including nine biotechs. This positive momentum has CFOs thinking hard about the chance to approach the capital markets in the coming months.
Even though the intention of the JOBS Act was to make accessing the capital markets more cost-effective, an IPO still has significant costs. Companies frequently underestimate these costs, as well as the time and intricacy involved in the offering. The IPO process complexity can vary widely based on a number of factors, such as the complexity of the IPO structure, the size of the company and dollar value of the offering, and a company’s readiness to operate in a public environment.
Factors that impact the cost of an IPO include both the costs of going public and being public:
- Direct costs of going public include costs such as underwriter, external auditor, legal, and financial reporting advisor fees
- Long-term costs of being public include costs such as the need to develop external reporting and supporting internal controls, investor relations, and human resource functions
Regardless of the individual nuances that mark a private company’s transformation into a public company, all IPOs share a common thread: a substantial investment of time, money, and resources.
I invite you to attend PwC’s upcoming IPO Readiness Seminar on Wednesday, September 28th at the Capital Factory. We are bringing an impressive local speaker lineup representing CFOs of recently public companies, legal advisors, and NASDAQ - all talking about best practices through the readiness process of IPOs and other large financial transactions. Learn more and register to attend.
Interested in PwC’s most recent data and perspective on the IPO market? Check out our in depth report called Global Technology IPO Review.