Key Considerations for Shareholders & CFOs Before Planning an IPO

In our third and final article, Paul Davies provides advice to any business considering a public listing in 2022

May 23, 2022
May 24, 2022

Having shared articles on the Yorkshire landscape for IPOs, a legal perspective from Rob McKie at DLA Piper and a CFO’s perspective from Gareth Hague, we conclude our series with the views and recommendations from the accountancy profession. There are a select few firms in Yorkshire who have the capability to advise on IPOs. Paul Davies at BDO is one of the most experienced and we were delighted when he agreed to provide his advice to any business considering a public listing in 2022.

 

“The key for any business considering a public listing in 2022 is to be realistic about valuations and to have the confidence that they have fully considered the options with their advisors and an IPO is the right move for them at this time”, says Paul. “It will be interesting to see how IPOs evolve in a post-pandemic world. What is clear is that early-stage companies have come back into the market, which opens up more opportunity for a wider range of Yorkshire businesses in the coming 12 months.”

 

So, how can you be better prepared around IPOs?

 

“We provide clients with an IPO readiness assessment,” explains Paul. “This is a free of charge assessment of how prepared your company is for a future IPO, with a particular focus on the accounting and financial aspects.” The assessment provides the Board and its advisers with an indication of practical steps that should be taken to assist a future IPO process. The review will also identify all potential future obstacles so businesses can start addressing them.

 

Considerations include:

  • Choice of market and what is right for the business
  • Corporate structuring and taxation and whether it is optimal to investors
  • A dividend policy and identification of any “blocks”
  • Presenting a track record and accuracy of historical financial information
  • Preparation of robust financial projections
  • Financial position and prospects procedures
  • Building the right management team
  • Implementing competitive management incentive and remuneration schemes

“Preparation for an IPO can be onerous,” says Paul. “The transactions can deliver huge benefits but not without careful and thorough preparation.”

We are very grateful to Rob, Gareth and Paul for sharing their thoughts on IPOs over the course of the past three weeks. It is really easy to understand the appeal of the IPO exit but it is also no surprise to hear from all of the experts and advisers that the list of considerations for planning, undertaking and post-IPO tasks is vast.

Whether you are considering IPO as an option for your business now, curious as to the option for the future or simply interested in talking through any of the details in this series, please get in touch with us. All of our clients can benefit from having personal access to our network of the very best advisers.

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