Should I take my businesses public?

A former Goldman Sachs insider just gave me the brutal truth about IPOs—when to do it, when to avoid it, and the key metrics that determine if you're ready (or setting yourself up for failure).

Yesterday, I had a call with an investment banker who spent 10 years at Goldman Sachs in Manhattan. Over the past year, we’ve built a solid friendship, and he’s become a voice of reason in an increasingly noisy environment.

I get pulled in all kinds of directions when it comes to the future of BioSteel and my group of companies. Should I take BioSteel public? Should I take the entire group public? Should I bring in private equity? I get solicited by firms all the time, each with their own agendas, and it’s easy to get lost in the noise.

That’s why conversations like this one are invaluable. They help me cut through the distractions and focus on what truly matters. Here are my biggest takeaways:

---

1. Only Go Public If You Absolutely Need To

Going public isn't just another milestone to check off. There has to be a compelling reason for it. Some of the most common reasons include:

• Raising capital for expansion, acquisitions, or major investments.

• Accessing resources that can help scale the business faster than private funding.

• An exit strategy for owners and investors who want liquidity.

If you don’t need to go public, staying private (or exploring private equity) might be the smarter move.

---

2. Timing Is Everything

Industries move in cycles. Some seasons are prime for IPOs, while others make raising capital difficult. Recognizing these cycles is crucial to maximizing valuation.

Going public at the right time can mean the difference between a strong, high-multiple IPO and a mediocre valuation that limits long-term upside.

---

3. The Key Metrics for a Strong IPO

One of the biggest takeaways from our conversation was identifying the North Star metrics that determine whether a business is IPO-ready. Here’s what he said:

• $50M–$100M+ in EBITDA: For maximum valuation, a business should be producing at least $50 million in EBITDA, with the ideal range being $75 million to $100 million.

• EBITDA Margin of 20%–25%: The business should be running at an EBITDA margin of at least 20% to 25%, ensuring strong profitability.

• 7–10% Year-Over-Year Growth: Growth is crucial. A company should be growing at a minimum of 7–10% annually to outpace inflation and the S&P 500.

• Sustained Profitability: This was non-negotiable. The business should be consistently profitable before considering an IPO.

These metrics act as litmus tests to determine whether a company is truly IPO-ready—or if it needs more time to build before making the leap.

---

4. Private Equity Can Be a Powerful Alternative

Taking in private equity can be a great middle ground between staying private and going public.

Private equity firms bring:

• Strategic expertise to scale the business.

• Capital without the quarterly earnings pressure of public markets.

• Operational resources that can accelerate growth.

This route allows companies to leverage external funding while maintaining more control than a public company would.

---

Final Thoughts

This conversation was a great reminder that major financial decisions should be strategic, not emotional.

Going public isn’t a goal—it’s a tool. And like any tool, it should be used only when it serves a specific purpose. For now, my focus remains on scaling BioSteel, driving profitability, and ensuring that if we ever take this step, we do it at the right time, with the right numbers, and for the right reasons.

Would love to hear your thoughts—have you ever considered taking a business public? What was your biggest takeaway? Drop a comment below.