Connor Group

Is an 𝗜𝗣𝗢 𝗦𝗽𝗿𝗶𝗻𝗴🌱 in our future? Our survey data suggests that the recent IPO Winter may be ending. Here’s what we found ⬇️ In our recent private survey, we identified 81 active clients preparing and planning for IPO transactions in 2025 or 2026! This is a 𝗿𝗲𝗺𝗮𝗿𝗸𝗮𝗯𝗹𝗲 𝟯𝟰% 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 📈 in IPO intention from our previous survey in January 2024. This meaningful increase is likely driven by 👉 improving stock market conditions, a building pipeline of deals, and positive feedback from investors and bankers. ------- PROFILE OF COMPANIES SURVEYED • Companies Reporting Plans to IPO:  81 • Total Capital Raised: $33B ($400M average) • Average Company Age: 10 years • Average Number of Employees: 700 This sample size is significant, representing one-third of the IPOs in a typical year (an average of 250 IPOs in the US over the last 20 years). -------- INDUSTRY BREAKDOWN 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆: 𝗠𝗮𝗰𝗵𝗶𝗻𝗲 𝗟𝗲𝗮𝗿𝗻𝗶𝗻𝗴, 𝗔𝗜, 𝗦𝗮𝗮𝗦, 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 💡 36% of all IPO intentions 💡 $13.4B in capital raised to date 𝗛𝗲𝗮𝗹𝘁𝗵𝗰𝗮𝗿𝗲: 𝗟𝗶𝗳𝗲 𝗦𝗰𝗶𝗲𝗻𝗰𝗲𝘀, 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗛𝗲𝗮𝗹𝘁𝗵, 𝗛𝗲𝗮𝗹𝘁𝗵𝗧𝗲𝗰𝗵 🧬 28% of all IPO intentions 🧬 $9.4B in capital raised to date 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 🛍️ 16% of all IPO intentions 🛍️ $3.5B in capital raised to date -------- Looking for support on your 𝗜𝗣𝗢 𝗷𝗼𝘂𝗿𝗻𝗲𝘆? We can help you ring the bell! 🔔 • Attend Connor Group IPO Summits • Visit the Resources page on our website for IPO guides • Connect with a Connor Group IPO Partner – reach out to [email protected], comment or DM

From the Connor Group family to yours, Happy Thanksgiving. We hope you have a wonderful start to the holiday season!

Our team is gearing up for the AICPA & CIMA Conference next month, and we’d love to 𝗖𝗢𝗡𝗡𝗘𝗖𝗧 with you! Will you be there? If so, comment below or DM us to schedule a meeting. It’s going to be a great week!

✨ THANK YOU to those who joined us at our Women in Accounting Networking Event in Boston! It was a fun night of making connections, sharing insights, and encouraging one another. We look forward to additional events in the future!

I'm excited to share my podcast with NetSuite is live! Vytalize Health won the award for the 2024 FASTEST growing private company on the Inc. 5000 and I got a chance to sit down with host Megan O'Brein to share our story, check out the first comment link below. ALSO if you've been dying to watch my onstage at SuiteWorld with NetSuite founder Evan Goldberg, you're in luck, check out the second comment link below.

Every year we make this recommendation. And every year we receive emergency calls in January from finance leaders who are already behind on technology. ➡️ Hoping to get more out of your existing tech stack? ➡️ Looking for more ways to automate manual processes and analytics? ➡️ Planning for 2025 Automation and AI initiatives? 𝗖𝗼𝗻𝗻𝗼𝗿 𝗚𝗿𝗼𝘂𝗽 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽. We’re known for: • Award-winning NetSuite and order-to-cash optimization and implementation • Developing robust tech strategies, including advanced automation, analytics AI, and machine learning • Automating end-to-end processes with powerful integrations and workflow automation 𝗗𝗼 𝘆𝗼𝘂𝗿𝘀𝗲𝗹𝗳 𝗮 𝗳𝗮𝘃𝗼𝗿 𝗮𝗻𝗱 𝘁𝗮𝗰𝗸𝗹𝗲 𝘆𝗼𝘂𝗿 𝘁𝗲𝗰𝗵 𝗶𝗻 𝗤𝟰. Your investment will produce big returns in the new fiscal year. DM us for more information or send us an email (see address in first comment).

Is 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗳𝗼𝗿 𝗽𝗿𝗲𝗳𝗲𝗿𝗿𝗲𝗱 𝘀𝘁𝗼𝗰𝗸 giving you a headache? 🤯 It doesn’t have to! 🔗 REGISTER FOR OUR WEBINAR: bit.ly/4ehl12c Preferred stock is a valuable tool for raising capital and attracting investors, but the complexity and variety of preferred stock features can lead to challenges for accountants. This webinar will help you master the basics of preferred stock accounting and equip you to successfully navigate financial reporting related to preferred stock. Our experts, Keyur Shah and Dan Weiss, will lead discussions on: ➡️ Defining a share-based modification and when modification accounting is required ➡️ Identifying the classification and measurement of preferred stock ➡️ Exploring accounting for the issuance costs related to preferred stock 𝗥𝗲𝗴𝗶𝘀𝘁𝗲𝗿 𝘁𝗼𝗱𝗮𝘆! bit.ly/4ehl12c

We express our deepest gratitude to the brave men and women who have served our country. Thank you, veterans, for protecting our freedoms.

Are you considering an IPO soon? 𝗥𝗘𝗠𝗘𝗠𝗕𝗘𝗥 ➡️ Going public requires more than just intent—it’s about adopting the mindset and operations of a public company well in advance. This guide provides expert insights into 𝗜𝗣𝗢 𝘀𝘂𝗰𝗰𝗲𝘀𝘀, aiming to help you prepare early to ride the next IPO wave. Inside, you will find: 1. An update on 𝗶𝗺𝗽𝗿𝗼𝘃𝗶𝗻𝗴 𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀 and what investors are looking for 2. Considerations for 𝗽𝘂𝗯𝗹𝗶𝗰 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗿𝗲𝗮𝗱𝗶𝗻𝗲𝘀𝘀, including often overlooked preparation areas 3. How to embrace the power of 𝗔𝗜 𝗮𝗻𝗱 𝗮𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻 to stand out as a leader in today’s market Ready to start your IPO journey? DOWNLOAD NOW!

𝗨𝗣𝗗𝗔𝗧𝗘: The IPO market is improving with more investor appetite for deals in '25 and '26. Bankers continue to be 𝙨𝙚𝙡𝙚𝙘𝙩𝙞𝙫𝙚. How can you stand out? ⬇️ Our Bay Area IPO Summit was filled with optimism about the resurgence of the IPO market. For companies looking to IPO in the next 1-2 years, here are key takeaways to consider: IMPROVING MARKET CONDITIONS 📈 • The IPO market is showing signs of recovery. Year-to-date, 𝟮𝟬𝟮𝟰 𝗵𝗮𝘀 𝘀𝗲𝗲𝗻 𝟯𝟬% 𝗺𝗼𝗿𝗲 𝗜𝗣𝗢𝘀 𝘁𝗵𝗮𝗻 𝘁𝗵𝗲 𝗲𝗻𝘁𝗶𝗿𝗲𝘁𝘆 𝗼𝗳 𝟮𝟬𝟮𝟯. Additionally, $300+ billion in US venture capital "dry powder" remains available. SUPPLY CONSTRAINTS 💰 • Contrary to popular belief, there is 𝗻𝗼 𝗰𝘂𝗿𝗿𝗲𝗻𝘁 𝘀𝗵𝗼𝗿𝘁𝗮𝗴𝗲 𝗼𝗳 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗱𝗲𝗺𝗮𝗻𝗱 𝗳𝗼𝗿 𝗜𝗣𝗢𝘀. The real issue lies on the supply side—few high-growth companies are prepared to go public, and no further IPOs are expected in 2024 WHAT ARE INVESTORS LOOKING FOR? 🔎 • 𝗥𝗲𝗱𝗲𝗳𝗶𝗻𝗶𝗻𝗴 𝗛𝗶𝗴𝗵 𝗚𝗿𝗼𝘄𝘁𝗵: Investment bankers now define "𝗵𝗶𝗴𝗵 𝗴𝗿𝗼𝘄𝘁𝗵" as achieving over 𝟯𝟬% 𝘆𝗲𝗮𝗿-𝗼𝘃𝗲𝗿-𝘆𝗲𝗮𝗿 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗴𝗿𝗼𝘄𝘁𝗵, while "profitability" is simply a business generating more than break-even profits. • 𝗧𝗮𝗿𝗴𝗲𝘁 𝗚𝗿𝗼𝘄𝘁𝗵: Companies should aim for a 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗴𝗿𝗼𝘄𝘁𝗵 𝗼𝗳 𝟮𝟱% 𝗼𝗿 𝗺𝗼𝗿𝗲 and articulate their story in a clear, compelling way. • 𝗣𝗿𝗼𝗳𝗶𝘁 𝗘𝘅𝗽𝗲𝗰𝘁𝗮𝘁𝗶𝗼𝗻𝘀: While 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 is not always required, companies must present a clear path to breaking even. Additionally, it’s essential to have a strategic vision for how the business will evolve over the next 3-5 years. • 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗕𝗲𝗻𝗰𝗵𝗺𝗮𝗿𝗸𝘀 𝗗𝗲𝗰𝗹𝗶𝗻𝗶𝗻𝗴: The average Annual Recurring Revenue (ARR) for companies that went public in 2022-2023 was $500 million compared to $200 million in 2024. • 𝗦𝗰𝗮𝗹𝗲 𝗗𝗼𝗲𝘀 𝗡𝗼𝘁 𝗘𝗾𝘂𝗮𝗹 𝗣𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: While scale is an important indicator, it 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗴𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲 that a company will meet the desired operating margins post-IPO. • 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝗶𝗲𝗱 𝗠𝗲𝘀𝘀𝗮𝗴𝗶𝗻𝗴: Define the company in a single sentence. Investors prefer 𝗰𝗹𝗮𝗿𝗶𝘁𝘆 to plug into their valuation models. • 𝗚𝗿𝗼𝘄𝘁𝗵 𝗡𝗮𝗿𝗿𝗮𝘁𝗶𝘃𝗲: A strong growth story remains a 𝗰𝗼𝗿𝗻𝗲𝗿𝘀𝘁𝗼𝗻𝗲 of investor confidence. • 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗖𝗹𝗮𝗿𝗶𝘁𝘆: The registration statement must articulate 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝘀𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝘀 in simple terms, comprehensible even to non-specialists. • 𝗔𝗜 𝗦𝘁𝗼𝗿𝘆: An 𝗲𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗻𝗮𝗿𝗿𝗮𝘁𝗶𝘃𝗲 𝗮𝗿𝗼𝘂𝗻𝗱 𝗔𝗜—how the company leverages AI—must be simple and free of buzzword-heavy jargon. The opportunities are vast, and the momentum is building. With strategic foresight and disciplined preparation, your company can successfully ride the next IPO wave. Thank you to our sponsors Donnelley Financial Solutions (DFIN), Wilson Sonsini Goodrich & Rosati, Gallagher, and Klarity for helping make this a memorable event!