The IPO is an exciting time for a company. It means it has become successful enough to require a lot more capital to continue to grow. It’s often the only way for the company to get enough cash to fund a massive expansion. The funds allow the company to invest in new capital equipment and infrastructure. It may also pay off debt. Stock shares are useful for mergers and acquisitions. If the company wants to acquire another business, it can offer shares as a form of payment. The IPO also allows the company to attract top talent because it can offer stock options. They will enable the company to pay its executives fairly low  wages up front. In return, they have the promise that they can cash out later with the IPO. For the owners, it’s finally time to cash in on all their hard work. These are either private equity investors or senior management. They usually award  themselves a significant percentage of the initial shares of stock. For investors, it’s called getting in on “the ground floor.” That’s because IPO shares can skyrocket in value when they are first made available on the stock market.