How to Prepare for a very good IPO

A successful GOING PUBLIC is the outset of an exciting chapter in the growth of your company. However , an GOING PUBLIC is no automatic way to profitability and is very difficult to manage. It is important to ensure that your company and management staff are totally ready to operate like a publicly traded venture before going consumer. Many companies that rush in an BÖRSEGANG (ÖSTERR.) and find themselves not ready for the post-IPO move are facing significant strains.

The most important aspect affecting success in raising equity capital is definitely investor positive outlook, which results in higher IPO values. We assess this by the percentage increase in shareholder equity in the end of the season before BÖRSEGANG (ÖSTERR.), divided by number of shares sold at the IPO (see the work below). The second most important factor is definitely firm overall performance pre-IPO, which can be measured by simply return on assets in the years following issuance. We find that higher ROEs just before IPO will be associated with a probability of success in raising collateral capital, nevertheless this marriage is drained at the end of your IPO yr (see the figure beneath, panel A).

Achieving success in an IPO needs thorough preparing and powerful systems to guide key functions, including entrepreneur relations, accounting, solutions, forecasting plus more. It also needs the leadership and support of an effective board, which is essential for retaining high levels of openness with investors. A good organization management system can certainly help a company plan for an IPO, by providing real time KPIs and automated rule-based alerts.

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