The Ideal IPO Candidate

Benefits of an IPO:

  • Liquidity

  • Visibility

  • Competitive positioning

  • Talent acquisition & retention

  • Great multiples 

  • Governance & reporting requirements de-risks business

  • Ability to return easily to the Capital Market

  • Scale

  • Using stock as a currency for strategic partnerships, JVs & M&As etc. provides Strategic Flexibility

An IPO can Unlock Remarkable Value

An Ideal IPO Candidate

Promoters & Management:

A Promoter determines the trajectory of a business. A promoter willing to invest resources on building a sound plan and efficient operations will be able attract quality capital and register robust growth over the long term. A willingness to adopt best practicess and technology is also critical.

Growth Potential:

The business should have room to grow over the long term. Only a buoyant sector will permit a business to expand and gain market share efficiently.

Capital Efficiency:

Long term profitability depends on a company’s cost structure. Good Planning, technology, efficient operations and effective management lowers costs  - and increases Capital Efficiency.

Compliance:

Compliance Culture sets a company apart from its peers. Its central to protecting the company from business and regulatory risks. Quality investors insist on best practices. Good Governance positively impacts the value of a business.

Preparation is Key

Getting IPO Ready

  • Formulation of a sound Business Plan

  • Building Operational Efficiency & Resilience

  • Technology Adoption

  • Building Good Management

  • Establishing Good Governance

  • Building Good Stakeholder Communication

  • On-boarding quality anchor investors

  • Correct estimation of funding requirement

Related Reading:

Previous
Previous

SME Challenges: The Low-Value Trap