What to Do Before, During, and After Your Company Goes Public
So, your company might go public. Maybe you’ve heard whispers. Maybe it’s more official. Or maybe it’s still just a “someday” kind of thing.
Either way, you’re probably sitting on equity—and if that equity turns into actual money, there’s a lot you can do now to get ready.
This isn’t just an IPO prep checklist. It’s also a timeline. What you should do depends on where your company is in the IPO journey.
So let’s walk through the key stages, from “hmm, maybe” to “it actually happened” and beyond.
Stage 1: “It Might Happen Someday”
Even if nothing is official yet, now’s a good time to start prepping—especially if you’ve got stock options.
Ask yourself:
- Do I have incentive stock options (ISOs)?
- Do I have the cash to exercise them?
- Is the strike price low?
If you’re three-for-three, it might be a smart time to consider exercising now. Why? Because if the IPO does happen—and the stock takes off—you could save a lot in taxes. The key is to stay ahead of the alternative minimum tax (AMT).
👉 Not sure what your AMT impact might be? Try our FREE AMT Calculator to get a sense of what exercising your ISOs could mean for your tax bill.
👉 Still unsure how your equity works? We break it down here: RSUs vs. stock options.
Stage 2: “It Might Happen This Year”
Now it’s getting real. If you think your company will IPO sometime this year—even if there’s no official announcement—do not wait.
We’ve seen too many people get caught off guard. Work gets busy, life happens, and suddenly the IPO has come and gone and you haven’t done anything. That’s when mistakes get expensive.
Like “add some zeros” expensive.
So here’s what to do:
✅ Get Organized
You need a clear picture of what you have.
That means:
- What types of equity do you have? (RSUs, ISOs, NSOs, shares)
- Where are the records? (Sometimes they’re spread across different systems)
- For each type, how much do you own, when did you get it, and what did you pay?
Break it down by type, then by lots.
A lot is just a chunk of stock that was acquired at a certain time and price. And yes, you can have multiple lots on the same day—especially if you’re exercising from different grants or different types of stock options. This gets messy fast, so clarity here matters.
For RSUs especially, pay attention to whether they’ve actually released (aka settled). If you’ve got double-trigger RSUs, they won’t settle until the IPO. So make sure you know how many will hit your account at the IPO, and how many might show up later in the year.
✅ Revisit Exercising Options
If you’ve got ISOs and you’re feeling good about the IPO timeline, it might make sense to exercise and hold. It’s a bit riskier—but if done right, it can mean a better tax outcome.
If you have NSOs, probably best not to exercise and hold. Those typically don’t offer the same tax benefits.
Stage 3: “The IPO Was Just Announced”
Alright—it’s happening. Now it’s time to check in with yourself: Are you okay with taking on a bit more risk?
Before, you might’ve been hesitant to spend cash to exercise options. Now, you might decide it’s worth it.
This is the difference between a good outcome and a better one. Not life-or-death. If you’re not comfortable, that’s totally fine. But if you want to optimize for taxes and long-term value, now’s a key window to act.
Stage 4: “The IPO Happened”
You made it to IPO day! But there’s still more to do.
Checklist:
- What was the listing price?
- When’s your lockup ending?
- How’s the stock performing?
Most companies have a lock-up period—usually 6 months—where you can’t sell your shares. So the goal here is to get your plan in place before that date hits.
Check out our post on How to Plan around Trading Windows for more on this.
Stage 5: Lockup Expiring
This is your first real chance to act. Once the lockup ends, you’ll enter your first trading window—and it helps to be ready to go.
Questions to answer:
- What’s your target price for selling?
- How many shares do you want to sell?
- What’s the plan with the cash?
It’s smart to go in with a game plan based on your goals and the stock’s performance. The last thing you want is to freeze up when the window opens.
Stage 6: The Year After
After your first window, the cadence shifts. Most companies open quarterly trading windows, and we’ll rinse and repeat for each one.
For every window:
- Are we selling shares? If so, how many?
- What’s our target price now?
- What’s changed in your life or goals since last quarter?
Think of this like RPMs for your portfolio: four revolutions per year. And just like with an engine, that consistent motion is what builds real momentum.
You’ll also want to stay on top of taxes: making estimated payments, preparing for next year’s return, and avoiding big surprises.
Don’t Forget to Invest the IPO Cash
It’s easy to focus on selling and forget about what happens after. But this is where the magic happens.
Think about:
- How much cash do you want to keep on hand?
- What’s your emergency fund look like?
- What’s your long-term investment strategy?
Once the IPO cash hits your account—and taxes are squared away—we want to get it working for you. The earlier you start, the more time you give compound returns to do their thing.
And one last note here: don’t lose momentum.
It’s easy to let things drift once the big event is over. But the real gains come from staying consistent.
Keep working the plan and those “revolutions per year” start to build something powerful.
Wrap-Up: This Is a Marathon, Not a Sprint
Think of the IPO as a launchpad. If you go in with a plan, stay organized, and keep showing up each quarter, you can turn this one-time event into long-term financial momentum.
And if you’re looking at this and thinking, “Okay, but how do I actually do all of this?”—that’s what we’re here for.
At KB Financial Advisors, we’ve helped hundreds of tech employees navigate IPOs.
From exercising options and avoiding tax traps to building a long-term investment plan—we’re with you at every step.
So, whether you’re at Stage 1 or Stage 6, we can help you build a plan that makes sense for you.
Get in touch with us to make the most of your IPO.
Until next time.
