A recent survey of 386 fast-growing companies found that although one in 5 hoped to go public within three to five years, many had not taken the vital steps that pave the way for a successful public offering.

Percentage of companies surveyed that had failed to --
document the fair value of recent stock options awarded to investors or employees 53%

establish a formal board of directors that meets regularly 31%

strengthen and broaden the management team 27%

put together a formal, written business plan 23%

create well-developed accounting systems and controls 20%

compile a history of audited financial statements 16%

produce timely quarterly financial statements 12%

Source: "Trendsetter Barometer," Coopers & Lybrand, New York City, May 1994.