3. Go on the Road Show

Now the fun begins (or not, depending upon your perspective). The road show is a multicity tour whereby the company's management meets with prospective investors to gauge interest in buying shares of the company when it goes public. If you have ever followed an IPO, you will recall that shares are first sold to institutional investors before they become available on the open market for the general public. The road show is what precedes that.

If you think there might be a lot of pressure on the management team during this process, you would be correct. The team has to woo and impress these institutional investors (e.g., banks, mutual funds, insurance companies, retirement funds, etc.) such that they will want to purchase a significant percentage of the shares when they hit the market.

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