Taking your company to a quote or listing on a stock exchange can be the most exhilarating, and one of the most significant steps for your business. However, it can also prove to be very time consuming, both in terms of the internal changes and managing the IPO process. Many companies need to address the following issues before in preparation for listing;
• improve quality and timeliness of reporting
• implement corporate governance procedures
• bring Non-Executive Directors on board
• set up or revise share option schemes to motivate and retain staff
• ensure founders/management tax affairs are optimised if they are disposing of shares as part of the IPO
• put in place an acquisition strategy to utilise a key advantage of being listed as many shareholders expect acquisitions to be part of the overall strategy for growth
• preparation of detailed budgets and working capital forecasts
• clean up the company of potential “issues” such as related-party transactions and intellectual property
• prepare a plan for how to maximise benefit from a quote/listing including a PR plan as appropriate
This obviously takes a great deal of management time and the danger is that management take their eye off the ball which can result in the business taking a downturn just when you need it to be firing on all cylinders.
With our experience we can assist companies through the process and act as part of your team, coordinating activities, managing advisers and ensuring that the process goes smoothly and you continue to grow your business and build shareholder value.