This article is a guest post by Jeff Majtyka, founder and president of Ellipsis, with Ronald Clark serving as a senior advisor to the company. The views expressed are solely those of the author.

As companies position themselves for IPOs in 2026, we see investors likely remaining "picky" in a complex market. This raises the stakes for executives and boards of prospective public companies: they may focus only on "how to go public," overlooking what is needed to succeed in the aftermarket.

Our firm has a saying: "Being public is harder than going public." This is not to say an IPO is easy—quite the opposite—it conveys that the IPO is just the beginning of a challenging journey.

As advisors who have counseled companies for years both before and after their IPOs, we have observed several common pitfalls that can predetermine aftermarket success or failure, from key early choices to whether the company is ready for the spotlight on listing day. Below, we highlight several critical risk points.

Choose wisdom over prestige

An IPO is a prestigious event. Companies are often drawn to well-known banks, top-tier law firms, and marquee advisors—especially the lead IPO banker at the chosen investment bank—expecting their reputations to create a halo effect in the market. While investors will take note of these endorsements of the company and its executive team, it is essential to avoid confusing reputation with effectiveness.

We have seen companies prioritize the "name on the door" while overlooking the individuals who will challenge assumptions, push back when necessary, and be accountable for long-term outcomes.

Issuers do have the right to choose their advisors, but the question is: have they spent enough time evaluating the people to form an informed judgment?

We often see the importance of this choice in key early investor relations decisions. For example, to achieve the most attractive initial valuation, companies are frequently advised to adopt the reporting metrics and methodologies of the most highly valued comparable companies in their industry—even if they do not track or incentivize management against those metrics.

If growth rates, margins, and these metrics exceed investor expectations, things may go smoothly. But when they diverge, problems arise, trust is lost, and the stock can depreciate quickly. After such events, it may take several quarters or years to regain investor trust, or it may never be fully restored. The best advisors steer clients away from these traps by focusing on what drives long-term value.

For CFOs, the lesson is straightforward: if forced to choose, prioritize effective advice over a shiny logo. This is not always easy, especially for visionary founders, but the deal team can be structured so that at least one advisor is empowered to be a true thought partner and "own" the outcome, not just the transaction.

Know your equity story

Recent media coverage of SpaceX's early IPO planning highlights a key part of the process: inviting potential bankers to pitch how they would value the company and tell its story.

Selling an IPO is an art, and bankers are skilled at it. The risk point for management and the board is over-relying on the pitch without grounding it in a solid understanding of the fundamental value drivers of the company in investors' eyes, and how that will play out in the aftermarket.

For example, we saw a well-known company that went public a few years ago follow its bankers' lead in marketing itself as a marginal "growth" story—when in reality it was an attractive and stable cash-flow story—in hopes of achieving a better initial valuation at the IPO. This led the company to make speculative growth investments after the IPO in an attempt to make that story come true.

Because the stock failed to appreciate in the years after the IPO, investors have grown restless as those initiatives fell short. They are pushing management to maximize shareholder value by owning what makes the company unique and executing accordingly, rather than trying to be something it is not.

Knowing who you are and carefully aligning your positioning, reporting metrics, and investor engagement strategy to match and support that identity is critical to attracting and building a strong investor base that lasts well beyond the IPO.

Manage expectations with confidence

Responsible companies embrace IPO readiness, ensuring that public company systems, processes, and controls are in place well before listing—this is critical.

But where mistakes occur is when the executive team and board are not fully prepared to withstand the extreme scrutiny of being a public company. Ensuring that the CFO and finance organization are equipped to handle the critical task of managing Wall Street expectations is absolutely essential.

We often see companies trying to set their guidance model too close to internal forecasts before the IPO to maximize the success of the offering. Unfortunately, analysts on the underwriting syndicate will build their models based on that outlook. If there is not enough room left to demonstrate a cadence of "beat and raise" as a public company, or at least a buffer for unexpected developments, it can lead to mismanaging expectations from the start.

This is a setback from which recovery is nearly impossible, and it seriously jeopardizes the reputation of the company, management, and board. It is also entirely avoidable.

For CFOs, managing board expectations about guidance is especially important. We often see board members reluctant to let the company temper initial Wall Street expectations, fearing it will dampen investor enthusiasm. This can trap the company in a constant chase for nearly unachievable guidance and set the stage for failure by over-prioritizing short-term performance at the expense of strategic priorities.

Stress-test the bear case

Every stock has a bull case and a bear case, and both take shape during the IPO process. However, as listing momentum builds, the internal echo chamber between advisors and management can drown out uncomfortable questions.

During the IPO process, we often raise our hand when we believe messaging risk is underestimated. This is most evident in a lack of Q&A preparation, especially on tough questions at the core of valuation, such as margin trajectory, growth sustainability, or regulatory and competitive risks.

Remember, when investors evaluate the story, they focus on the vision, strategy, and leadership conveyed by the CEO. And when they value the company, they focus on belief in the financial model and the CFO's ability to deliver on it.

The IPO process offers a valuable opportunity to stress-test the narrative through pre-IPO "test the waters" institutional investor outreach and syndicate analyst feedback. CFOs should use this feedback to fortify the story, ensure KPIs are well-aligned with achievable milestones, and prepare a clear plan to reinforce the investment thesis in the aftermarket.

We often see these critical investor relations initiatives delayed, leaving the company on its back foot in the most vulnerable first few quarters as a public issuer. The aftermarket is no time for improvisation.

In our experience, even when the IPO process is carefully planned, there are landmines everywhere, from advisor selection to the last piece of confetti falling at the bell. Avoiding these landmines and being willing to prioritize long-term credibility over short-term optics is the true test of whether a company is ready to "survive as a public company" rather than merely "go public."