The right way to Prepare for a Successful IPO

A successful BÖRSEGANG (ÖSTERR.) is the starting off of an interesting chapter in the regarding your company. However , an IPO is no automatic way to profitability and can be very difficult to manage. It is important to be sure that your company and management group are fully all set to operate like a publicly traded venture before going people. Many companies that rush in to an IPO and find themselves not ready for the post-IPO changeover are facing significant obstacles.

The most important aspect affecting success in raising fairness capital is definitely investor confidence, which results in higher IPO valuations. We evaluate this by the percentage embrace shareholder equity towards the end of the month before BÖRSEGANG (ÖSTERR.), divided by number of shares sold at the IPO (see the physique below). The other most important factor is normally firm effectiveness pre-IPO, which is measured by return on assets in the years following issuance. We find that larger ROEs prior to IPO are associated with the probability of success in raising equity capital, although this romance is low at the end on the IPO 12 months (see the figure beneath, panel A).

Achieving success in an IPO needs thorough preparation and powerful systems to compliment key features, including investor relations, accounting, financial, forecasting and more. It also needs the command and support of an powerful board, which is essential for preserving high levels of visibility with traders. A good business management system can help a company plan for an GOING PUBLIC, by providing real-time KPIs and automated rule-based alerts.

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