My company is going public, should I buy in?

My company is going public on the Paris Stock Exchange at the end of the month. They are offering a great deal to buy into the company. 20% off the stock and they will match what we buy. I dont see a reason not to buy in because they were "selling me" on the idea and never presented a reason not to buy in.

The way I see it, if the stock goes down 60% I get my initial investment back.

I would take some money that you are happy (ish) to lose and to go for it. In this current global economy the number of IPOs that aren't financially sound is pretty small so if institutions are buying in then you should too. If it is just the owner's way of selling out of the business then beware but normally they'd sell it privately rather than go to the expense and risk of an IPO.

You should acknowledge though that it is in the company's best interests to have you buy in as you are then more invested in the business and less likely to leave.

And before you buy, you should know under what circumstances you will sell. Maybe it is if the shares tank by 50% you'll sell and take the profit but let's think positively, at what point in a rising market will you sell some or all of your shares? Believe me, if you don't set these mentally before you buy you are likely to torture yourself in the future about when to sell. You can always make educated adjustments to the decision later in light of more knowledge and shifting economic situations but you MUST set it in your mind before you buy when and why you will sell.

Lastly be aware that the shares may not be very liquid (easy to sell) early on so any share price quoted may differ substantially from what you end up getting if you try to sell.

Is the company doing well financially? Is it growing at a sustainable rate? Can you check your company's balance sheet, income statement, and cashflow statement? If the company is light on debt and heavy on assets (i.e., cash, new products, patents, etc.), that is a good sign. If the company's income is going higher every year, it is a good sign. If the company's cashflow statemet is positive, and growing, it is a good sign.

If the company is high in debt, red flag. If the income is going down, red flag. If the company's cashflow is going down or negative, it is two red flags.

Do your homework, and then decide.

of course they are not going to tell you NOT

it's all a gamble

Being a part of the company I'm sure you are familiar with how they are doing. If they are growing in their industry and business keeps looking better and better then I would buy in.

Make sure to check what the rules are for selling the stock you buy. Because you work for the company and are buying it through the company, their may be some rules on when you can sell and how much you can sell.

The 20% off and matching sounds like a great deal that would be incredibly hard to pass up.