So, You Think Your Company’s Ready to Go Public

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Nov. 11 (Bloomberg) -- In today’s “This Matters Now,” Spencer Rascoff, CEO at Zillow, talks with Tom Keene about the reasons that a company may go public and how it changes a business. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

101. what is the biggest trigger?

Questlikes comedies want to have liquidity for their employees.

-- companies want to have liquidity for their employees.

It is not just liquidity itself, it is a means to an end.

Companies that are successful over the long term view it as just a milestone, but not an event in itself.

Does your relationship with the accountants, does the auditing change when you go public?

A little bit.

It starts to adjust about a year before you go public.

Most companies that are well run, frankly, are 80% of the way to being ipo ready for -- from an accounting standpoint.

The issue is understanding the leverage of your business.

Zillow, for example, if we hired more sales people, what would happen to the revenue?

Companies like groupon, who were not sure what would happen internationally and then really struggled, or facebook who was not sure how to monetize mobile.

That is the biggest hangup, understandably.

Three guys in brooklyn are wicked cool and want to go public in black t-shirts.

What is your device to them about what not to do?

They are already on the wrong track if that is what they are focused on.

They should be focusing on an enduring company.

At the revenue line?

It is all about revenue.

Investors are willing to pay for growth because they feel that profits will come later.

If you are in a market like real estate or other local services or other parts of the internet that are very hot, there is an expectation that profitability can follow.

Coming up, we are going to

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