Initial Public Offering – IPO
Taking a company public requires what is known as an initial public offering. This term is usually simply abbreviated to IPO. The process of taking a private company public is an exceptionally complex, time-intensive and lengthy process.
With the foregoing in mind, at Barrend Asset Management, we have studied how to best complete an entire IPO process. We have clearly mapped out what exactly needs to be done and by whom. We have established a timeline of the objectives that need to be met. Our team is made up of experts with a wide spectrum of relevant IPO experiences. As such, we know how to conduct, carry out and complete all the various steps in order to complete this monumental task. It is important to keep in mind that each portion of the project needs to be accomplished accurately, correctly and in the right sequence.
Clearly a project of this complexity needs careful and thoughtful planning. The right information needs to be provided to the correct team to handle. Essentially, there is much by way of plans that need to be carefully carried out. The process needs to fit so well together in order to provide that final outcome—a completed and successful IPO!
There are also many internal and external factors that have to be considered. Company details, the markets, timing, the financial situation and much more have immense bearing on the process. After all, going from a privately held company to a publicly traded corporation is a gigantic and fundamental business shift. The changes must affect nearly every aspect of the company. The alterations have a deep and lasting impact on each and every department, administrative operations, manager, supervisor and employee.
Going public is a uniquely complicated process and is expected to challenge and demand huge sacrifices from those that are participating in the IPO process. Fortunately, we know how to plan, carry out and successful complete IPOs. At Barrend Asset Management, we have put in place the guidance and roadmap to success. We are well aware of methods that will minimize the difficulties and overcome the obstacles. Our systematic approach assists us to anticipate the areas that are likely to be problematic and to put in place actionable solutions. We have the experience and the know-how to ensure a much smoother operation.
Barrend Asset Management carefully considers if an IPO is the right option for a particular private company. We start by first examining and analyzing whether going public is right for this company. We ask probing questions and we conduct research into the financial options available. It is vitally important that we share with the clients the benefits and the risks of taking their company public. This is a very serious decision that needs to be carefully considered.
We assist our clients to better understand their own needs and their key objectives. Should an IPO be the right answer, we then have much work to assist the client company to understand what an IPO entails. The details are important as there has to be a mutual understanding between us and the target company about the purpose and of the IPO. Since timing is so crucial, we map out a detailed timeline that will provide a realistic completion date for the IPO. The company and its directors are made aware of the importance of maintaining their operations while simultaneously working on the IPO.
Listing Market Options
Amongst the many serious decisions that need to be made, the choice of which market to list the public company on must be a significant one. There are so many options to choose from, each with its own set of pluses and minuses. As there are multiple stock markets around the world identifying the correct one is a vitally critical decision. At Barrend Asset Management, we have many years of relevant experience with a number of stock exchanges. In that capacity we can guide, help an assist our clients in their choices. Our aim is to have our clients list on the exchange that will best suit their own needs, their own objectives and their own preferences.
Once a company has decided to go public, we will work with them to map out the various markets that they can list their company on. By necessity, this decision must be made at a relatively early stage in the process. The option of where to list will essentially dictate much of what must be done.
Key Factors to Consider
Understandably there simply are various facets, factors, and aspects that need to be considered when going public. To help clarify the issues and the options we have laid out a list of factors to carefully contemplate. These include, among many other factors the following:
- The business market that you are in
- Your company’s business model
- The size and sales volumes of your company
- The existing ownership of the company
- The number of investors that are behind this venture
- Your company’s base of operation
- The language that is most often used to communicate within the company
- Where have other similar companies listed their companies
- Which exchanges have your competitors listed with
- The company’s valuation
- The accounting standards that you currently are following
- The level of audited financials that the company can reliable obtain
- Liquidity levels of the various targeted exchanges
- The associated fees and payments that must be paid at the stock exchanges
- Plus, many more pertinent facts and deciding factors
Advantages with Barrend Asset Management
In a complex IPO transaction, there is a real need for an experienced partner that has the requisite know-how. That is why Barrend Asset Management has assembled a skilled team of qualified and knowledgeable professionals. A team that has what it takes can make a world of difference. Our team sets our financial offerings, our IPO services apart.
In choosing your IPO partner, we invite you to consider Barrend Asset Management. Due to our wealth of knowledge and necessary experience, in this domain, we can be a vital associate to you and your company. To successfully complete an IPO, there will be many challenges. You will need a partner that has the confidence to see you through the tough times. Consider that the Barrend Asset Team has some one hundred experienced professionals and experts.
Barrend Asset Management is proud to state that we have worked at a variety of international markets. Our experience includes carrying out transactions in well over thirty stock exchanges and markets globally. Because of this knowledge and because of our experiences, we can help you to choose the right exchange to list with.
Have your considered or are you thinking about a dual listing for your company? This too is a big decision to make. we can guide you in making that decision as well as selecting which exchanges can best suit your needs.
Since the list of products, services and financial options that we have is lengthy, we should point out that we have specialist that are focused on the IPO markets. At Barrend Asset Management, our IPO team can assist you and your company to consider the various options and choose the one the best fits your vision and your desired outcomes. Our IPO related services include the following:
- Meeting with the client to listen, learn and understand their objectives
- Researching the company and its history
- Conducting in depth review about the company
- Carefully considering the company, the business advantages and its potential
- Examining the competition and how they measure against the company
- Gathering and listing the intellectual property of the company
- Looking at patents, trademarks, copyrights and other intellectual property
- Market research and market potential
- Listing the possible exchanges that the company may wish to consider
- Identifying the pluses and minuses for the stock exchanges
- Providing a detailed outline of the going public process
- Conducting stress tests for the company and for its finances
- Examining existing financial obligations
- Listing loan options and bridge financing possibilities
- Assisting with human resources and streamlining the workflows
- Improving the communication with external stakeholders
- Cooperating with public relations companies for positive media coverage
- Working with regulator and market authorities to overcome obstacles
- Plus, a host of many more services that we can bring to the table
Your Company Being Prepared for an IPO
Any company that is going public will need to work hard to prepare their internal and external documentation and paperwork. The documents include business plans, financial statements, market research, sales objectives and much more. It is also necessary to clearly identify who the owners of the business are and what shares of the company they own. Additionally, all of the key people in the company need to be identified and their exact roles explained. Any trademarks, patents and other intellectual property would need to be carefully identified and explained.
Preparation for an IPO are lengthy, complex and daunting. Being prepared will make a world of difference. Knowing the work that is ahead can prepare the company and its management team for what to expect. Essentially, a private company that intends to go public, via an IPO process, needs to put its affairs in order. The internal structure needs to be properly aligned. The finances of the company have to be as solid as they can be during the process. Financial reports are going to be central to the IPO process and all efforts need to be done to achieve the best possible results. Since audited financials are a key requirement, the sooner that those can be reliably conducted, the better it will be.
Because the IPO process is exceedingly time-consuming, managers will need to train their assistants and lower management to handle more of their workload. By doing so, managers can spend time on the IPO process and minimize the impact that their absence from their daily assignments will cause. Much of the fine details, involved in an IPO, could be done by a trusted partner. This is another area where the Barrend Asset Management team can help you.
Partnership with Barrend Asset Management
Choose carefully and choose wisely—that advice is often given prior to making big decisions. Certainly, going public and deciding to go the IPO route qualify as truly big business decisions for your private company.
Involved in the decision-making process is what company to partner with to complete the IPO process. We invite private companies that are contemplating going public to consider partnering with us. Why do we say that?
We would highlight the strength of our team, the education level, the knowledge, the know-how and the experience. We believe that our team does, in fact and in deed, make a huge difference.
The Barrend Asset Management team is here to help you, guide you, work with you, assist you, collaborate with you and support you. At each section of the IPO process and each portion of the to-do list, we can be there for you. We plan with you and then we strive to work towards achieving the stages of that plan together. The aim, in our minds, does not waiver; we need to complete the IPO mission and make the IPO a success.
Initially, we will begin by meeting with your team and showing you an outline of the process. We will then cover the different stages and answer your questions. We will then need to take a deep dive into your company, how you function, what makes you better, what areas need to be improved and so on. We will gather key facts about your operations, your executives, your managers, your company and the organization as a whole. By learning your strengths, we can help to better highlight those. By finding the areas that are not as strong we may be able to help you to adjust or even correct those.
Secondly, we will create an action plan and decide which tasks need to be completed by which executive or manager. We will also assign a timeline for when each task needs to be commenced and when each task needs to be completed
Next, we will focus, together with you, on generating the long list of reports that will be demanded in an IPO. Here too we will need to apportion the various reports to different executives and managers. Again, timelines will be established, and due dates identified.
Notably, with the passage of time, we have refined the process. We have also been able to correctly identify areas of concern for a company that wishes to go public. By noting those facts early in the process, many companies have been able to correct and adjust their areas of weakness. They, thereby, can perform at a higher level and can be better candidates for an IPO.
In partnering with Barrend Asset Management, you and your team can have a confident partner to work with and a knowledgeable partner to collaborate with. Our professionals can be instrumental in helping you and your company to be better prepared and made ready for the daunting challenges of going public.
What to Expect Following an IPO
Since the IPO process is a long one, it can seem early to think about what to expect, and indeed what to expect, following a successful IPO. In reality, the IPO process takes a private company public. This might be comparable to a big change in a person’s life. Similarly, this is a fundamental change in how a company will function. While the very basics may not see a huge shift the rest of the operation will surely have to be transformed.
Consider the fact that when the company was private, the decisions taken were largely internal. However, as a publicly traded corporation, the decisions that will be taken may have a larger impact, especially on the many shareholders.
Therefore, it is easier to think of an IPO as a new beginning for the company and for those that work there. There will be many adjustments that will need to be made at multiple levels within the company. Following an IPO, the Barrend Asset Management team can be there for you. Here, again, we stand ready to help, guide, assist, answer questions and find workable solutions for you and your issues.
It is good to keep in mind that public companies have a duty to their shareholders and their stakeholders. Public companies must work very closely with their accounting team and their external auditors to deliver accurate and timely financial reports. News that may impact the company and the share prices, has to be disclosed at the appropriate time. The information ought to be disseminated via approved communication methods. Rules and regulations surrounding publicly traded companies need to be carefully observed. Board members should bear their fair share of responsibilities. In short, many parts of the public company must work in unison.
Public companies can get far more attention than private ones. Some of that attention may be welcome but this too could bring unwanted scrutiny. The rules of being a public company can be lengthy and they must be followed so as not to run afoul of the law.
Running a Public Company
After the IPO the company is no longer a privately held firm but a publicly traded one. The responsibilities with a publicly traded company are vastly greater than when being private. Now, decisions have to be made while keeping in mind the rules and regulations of the particular exchange or exchanges that the public company is now list with.
The transition would include the ongoing obligations of delivering the required reports at the proper time. Some exchanges require a monthly progress report. Others make it obligatory to provide financial statements every quarter. Then there are the far more complex yearly reports. In addition, the are requirements for the board of directors for publicly traded companies. There are committees that must be formed, and those committees also may have reporting responsibilities. Ownership of shares must be disclosed. Shares and share options have to be clearly identified. Compensation by key executives and to board members usually must also be divulged. Public relations should be carefully managed and positive press will have to be pursued. Shareholder communication cannot be neglected as they are now part of the extended family associated with the company.
While all those added responsibilities must be addressed the company and the business continue to run and must operate efficiently and smoothly. Shareholders usually expect a company that has gone public to deliver better results, expand sales, increase revenue and add to their profit margins. All of these miscellaneous responsibilities and tasks must be identified and carried out correctly, accurately and on time. The team at Barrend Asset Management stands ready to assist with these many and varied tasks.
At Barrend Asset Management we have the knowledge base, the history, the specialists and the experts to help you accomplish these many obligations. Our smart and knowledgeable team can assist you to reach your goals while meeting your reporting and financial obligations.
What to Expect Down in the Future
Weeks, even months after a successful IPO, there may still be issues and factors to consider and watch out for. This area, seldom considered by our competitors, is of concern for us at Barrend Asset Management. There are opportunities going forward. There may be new projects that need to be accomplished, new challenges to conquer.
What about funding and financing for new expansions and new markets? Here too the Barrend Asset Management team stands ready to assist. If there are loans that are needed or capital purchases that are required, we are here for you. Better access to export funding? We can do that too. Improved lines of credit and credit facilities? We provide solutions in those areas also.
What about another round of financing? Too early for some but the time may come that this may be necessary. Once again, the team at Barrend Asset Management can be there to work on that financing project too.
In a variety of methods and ways, Barrend Asset Management would like to be of help and assistance. Consider Barrend Asset Management for your IPO and for your many other requirements and needs. Let us discuss your objectives and collaborate on reaching them.