GM posted a first quarter profit of $865 million -- its first since 2007. This has set the stage for GM to issue an IPO. Before doing so, however, there is a lot of ground work that must be done. One key question is: How much is GM worth? Secondly, how much stock should be offered? GM and the Treasury have met with major bank officials to figure this out. Out of these discussions a "lead bank" will be chosen to handle the IPO. The lead bank, by the way, is the first one listed on the prospectus.

A prospectus must be written in which disclosure of pertinent data about the company is disclosed, including the number of shares, the offering price, and a current balance sheet.

Now add to this mix the question of how the government plans to dispose of its shares of GM. To do this the Treasury has hired Lazard Ltd. at $500,000 per month to advise them. The Treasury has a $40 to $50 billion stake in GM.

Then we have the question of how to handle GMAC, the lending arm of GM. Former Chairman Rick Wagoner sold 51% of GMAC to a private equity firm, Cerberus Capital Management LP in 2006.

Chief Executive Officer Ed Whitacare was appointed chairman by the government when GM emerged from bankruptcy in July. He wants to secure GM's lending arm before the IPO. He also expressed his desire to launch the IPO during the fourth quarter.

So what we have are a series of "behind-the-scenes" maneuvers that must come together before the final stock offer is made.