IPO Readiness

Posted by   Rajeev Kumar   |   Categories :   IPO

IPO Readiness – Save time and costs, increase transaction certainty by adopting a structured approach to your IPO journey.

Going public can be both exciting and challenging. Let JRSCA lead your company on the path to achieve key milestones in your future development. Having an advisor with the right experience and insight can make the difference in helping you achieve your objectives.

For founders of companies, an IPO can be a great opportunity to capitalize the wealth accumulated in the company. Preparation for an IPO is highly complex process and management sometimes underestimate s the effort, costs and due diligence procedures that it entails. The companies that outperform the overall market prepare early for their IPO. Businesses need to undergo many months of advanced planning, organisation and teamwork before they are ready to go public. When the market timing is right, it’s the companies that are fully prepared which are best able to leverage the window of IPO opportunity. Transaction readiness and planning start 24-36 months prior to the IPO.

As you embark on the IPO journey, it is essential to have a complete understanding of the full impact of a wide range of IPO considerations on your business, as well as a comprehensive game-plan for navigating seamlessly and avoiding potential roadblocks. That means effectively and efficiently addressing a host of potential execution, regulatory and compliance challenges during the offering, as well as continual business challenges after the IPO.
Because after all, it’s not just about going public – it’s about being public.

The IPO value journey and readiness

  • Preparation work can be onerous. Identify opportunities and bring work forward to reduce the pressure on management near to the IPO
  • Have all potential future stumbling blocks been identified and resolved
  • In current market conditions only the most prepared companies are likely to be able to take advantage of windows of opportunity and meet the investor’s requirement
  • Provide the board and its advisors with an indication of practical steps that can be taken in the short term to assist a future IPO process

IPO challenges

  • Preparing for the IPO value journey -(24-36 months prior to IPO)
  • Keeping your options open -(24-36 months prior to IPO)
  • Timing the market -(24-36 months prior to IPO)
  • Building the right team to take you public – (24 months prior to IPO)
  • Building your business processes and infrastructure-(24 months prior to IPO)
  • Establishing corporate governance -(24 months prior to IPO)
  • Managing investor relations and communications -(24 months prior to IPO)
  • Conducting a successful IPO road show -(24 months prior to IPO)
  • Attracting the right investor and analytics -(12-24 months prior to IPO)
  • Delivering on your promises – (12-24 months prior to IPO)

Effects on IPO value journey and readiness review

  • Asset arrangements to find out opportunities to increase the shareholder’s value
  • Assessment of strategies and current financial situations and optimization studies of financial structures
  • To focus on asset utilization and profitable investment opportunities
  • To reorganize or divest less profitable or loss making businesses/products
  • The company can also enhance value through capital restructuring, it can innovate securities that helps to reduce cost of capital
  • Corporate restructuring entails a range of activities including financial restructuring and organization restructuring
  • Improve processes and implement controls
  • Improve corporate performance and quality of management

Value Added Services

Preparing the company early for the IPO exercise is a critical success factor to achieve a smooth execution process to become public listed. These preparations includes identifying and rectifying potential issues so that it can enjoy the advantage of most favourable timing for the IPO

September 12, 2016

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