IPO Preparation & Management Overview
Listing a company on the Stock Exchange is a laborious process, but the benefits to your business can be immense. SavvY Consulting’s IPO service offer exists to help companies develop and execute a plan for listing. SavvY can assist at every step, from assessing the business transformations necessary to conform to regulatory and exchange standards, to implementing the transformations, all the way to mediating with key organizations in the listing process (e.g., banks, regulators, sponsors, bookkeepers, legal firms, auditors, PR firms, etc.)
Every company is different, but SavvY’s offer is designed to help companies of any sophistication find their way onto the Stock Exchange (For Example, London Stock Exchange –LSE). Our first step is always Gap Analysis – assessing the client companies Financial Reporting Procedures (FRP) against the strict requirements of overseas regulators and the exchange itself. This analysis comprises eight key elements:
- High-level financial control mechanisms such as internal audit, risk identification and management
- Internal controls
- Budgeting and forecasting processes
- Treasury management
- Accounting practices
- The format of management reports
- Consolidation and reporting of financial documents
- Control IT mechanisms
Once we assess the state of these FRP elements relative to the requirements, we can develop a concrete plan to elevate each to the standard necessary for an IPO. On the basis of diagnostics from Gap Analysis, our consulting professionals in each field will develop policy guidelines, training programs and auditing controls to ensure that the client company’s organization is able to independently work in conformity with regulatory and exchange requirements.
Once the client company is up to standards, it is ready to begin the IPO process. This process is complex, involving large volumes of work with multiple parties, including regulators, the exchange, bookrunners (typically banks and consulting firms), lawyers, accountants, auditors, and PR firms. An expeditious and successful IPO requires careful coordination of the different workstreams with the various parties. Here too, SavvY can help. Our background in Western business practices, and the depth of company knowledge gained during the process of bringing the client company up to standards put us in an optimal position to mediate and manage the many complex workstreams that will happen during the six to nine months it will take to go public on the LSE.