So, what can you expect when floating your business?
As an entrepreneur, you’ll know that a substantial amount of work goes into creating a market-leading firm. Managing a flotation is no different. First off, you’ll need to plan a timescale, and be prepared to be flexible and the word ‘compromise’ will need to be part of your vocabulary.
Be clear about your goals.
Why do you want to float your company? Is it solely to raise capital? Are future acquisitions in your business plan? Is this just to propel your firm into the public eye? What market is best? Is it the right time to take your business to the next level? It’s crucial to consider these questions from a personal and professional viewpoint. And don’t forget to take a cold, hard look at your diary: do you and your management team have the time to take the company to market as it’s a time consuming process?
Then there’s the issue of cost.
As with many things in life, you get what you pay for and it’s likely that you’ll incur costs you hadn’t considered at the start of the process. Due diligence will eat up a big chunk of your budget but it must happen prior to flotation. So, prepare yourself to conduct a root and branch investigation into the commercial activities and internal operations of your company.
Unsurprisingly, advisers’ fees vary depending on the level of work and the size of the business. Your expected market capitalisation and the funds raised as part of the IPO will also have a bearing on the total costs.
You must also ready yourself to comply with the myriad legal and regulatory standards required of a public company. Your adviser will be able to guide you through this. For example, public limited companies must have a minimum share capital.
Then there are the separate rules laid down by the market your firm chooses to join. Each market is different and you’ll need to make sure you’re going to be on the market most suitable for your company’s future growth.
And, although this may seem obvious, don’t worry if you find elements of the flotation process stressful. With the right adviser, stress levels will be kept to a minimum. But it’s perfectly natural to be anxious. You know you have a solid investment; do the flotation right and so will potential investors.
A trusted adviser with a deep well of experience, a breadth of knowledge and, above all, integrity, is your next stop. Panmure Gordon embodies all of these qualities. We will work with you to ensure that going public matches up to – and exceeds – your expectations.