Initial Public Offering - IPO
An Initial Public Offering, also known as an IPO is an arduous and truly monumental task. The whole process of an initial public offering, and of going from a private company to a public company, is a lengthy, daunting and demanding one. That is why at Bouchard Fintech we have studied how to best start and complete an IPO. We also know exactly what has to be done and when it has to be completed by. We know how to carry out and complete all the various procedures both sequentially and correctly.
There is much that must be correctly planned and then carefully carried out for the process to succeed. There are also many internal and external factors that have a bearing on the process. Going from a private company to a public one requires a huge fundamental business shift. The changes affect nearly every aspect of the company and impact each and every department, manager and employee.
Going public is a complicated process and is expected to challenge and demand huge sacrifices from those involved. The good news, though, is that we know how to plan and how to carry out successful IPOs. At Bouchard Fintech, we know how to minimize the problems, overcome the challenges and how to make the entire process simpler and smoother.
At Bouchard Fintech, we start by first analyzing if going public is the right move for the company. We assist our clients to better understand the timing involved with an IPO. We also discuss with our clients both the positive aspects of going public as well as the negative ones.
Which Market to List On?
If the client company has decided to go public then one of the earliest decisions that needs to be made is about which stock exchange to list the company on. Since there are many stock markets around the world listing on the right one is an important and critical decision. At Bouchard Fintech, we have many years of experience with various stock exchanges and can help to steer our clients towards the one or more markets that best suit their own set of requirements.
Listing on the correct market is a hugely important decision. It is a decision that will have an impact both now and for many years into the future.
Key Factors to Consider
There really are so many aspects, facts and factors to consider when going public. The following is a list of some of the more important factors to consider:
- Your current base of operations
- Your target markets
- Where similar based businesses are listed
- The language preference of the management team
- The size of the company that is going public
- The liquidity of the desired stock exchange
- The structure of the company that is going public
- The company valuation
- The number of investors
- The regulatory requirements of the desired stock exchange
- The reporting standards of the desired stock exchange
- Nature and areas of specialization of the stock exchange
- Time zone that the stock exchange operates in
- Compliance standards and issues
- The fees and costs related with that stock exchange
The Bouchard Fintech Difference
When it comes to an IPO the Bouchard Fintech team truly makes a world of difference. The talent pool, the skills, the education, the knowledge. the vast experience and the reliability of our team members set us apart. You want to be sure that the team that you are working with really knows how to carry out IPOs and how to do them successfully. You also want to have a high level of trust in the team that you are working with. You want to have the confidence that they know what they are doing and know how to achieve the desired results. No doubt, our team at Bouchard Fintech is a huge part of our strength and a major part of our success.
The team at Bouchard Fintech has close to 100 different experts and professionals. Our team members have experience from many international markets and have worked with over 30 different markets and stock exchanges. Our team has the necessary know-how to complete the IPO process successfully. We help you to identify the ideal stock exchange to list on and help you determine if a dual-listing is the right move for your company.
We have a long list of services that we offer for clients that wish to go public and successfully carry out their IPO. Some key services include:
- Conducting a detailed company review
- Carrying out a thorough business analysis
- Improving internal controls and reporting methods
- Studying the industry and conducting specific industry reports
- Market analysis and appraisal of the market potential
- Multi-faceted company valuation reports
- Readiness report for the company to go public
- Getting your HR department up to public standards
- Identifying and listing all the issues that must be corrected prior to going public
- Cataloguing of stock exchanges and related advantages and disadvantages
- Stock exchange entry requirements and reporting standards
- Identifying quality partners to work with
- Coordinating with lawyers, accountants, bankers and auditors
- Cooperating with regulatory authorities
- Working with PR firms and issuing press releases
Preparing the Company for the IPO
It must be stressed that the going public process is a detailed and lengthy one. Once a company has decided to go the IPO route, there are many tasks that must be correctly completed. The company business plan and the company sales plan must be completed. Executive summaries have to be created. Detailed information about the company ownership must be clearly identified and listed. An accurate biography of the key company executives has to be generated. The company assets, including intellectual property, have to be accurately identified.
A company that is going public must really get its house in order. It has to make sure that its finances are up to the acceptable accounting reporting standards. The company finances may need to be certified and/or audited.
The above tasks and many more have to be correctly carried out and must be done expertly and professionally. All of that while the company executives and managers continue their already heavy work-loads. That is why it is so important to have a trusted partner, such as Bouchard Fintech, on your side. We can take care of so many of the other details while you and your team can continue to focus on running your business and carrying out your daily work duties and responsibilities.
Why Partner with Bouchard Fintech for Your IPO?
When it comes to going public and for that supper crucial IPO process you truly need to have a trusted team of experts on your side. At Bouchard Fintech, our team members make a world of difference. We are here for you and we are here to help you and assist you with the various aspects and stages of an IPO. Whatever is needed and whenever it is needed, our team members can get it done. At Bouchard Fintech, we know what needs to be done, we have the drive to get it accomplished and we have the desire to make you succeed.
The experts at Bouchard Fintech are here to help you through the IPO process. To begin with it is important to let our team carry out a comprehensive and detailed review of your company. Our team knows what is needed for a successful IPO. We will help you to answer the many questions and help you to create the various required reports. We will also assist you and your team to set a detailed action plan and to stick to it. By correctly prioritising the tasks that need to be carried out, the work is completed in a timely manner.
Over time, we have correctly identified issues and areas of concern that need to be corrected or adjusted before starting the IPO process. Critical areas include meeting governmental requirements, financial reporting, labour laws, ownership identification, HR standards, governance, related party transactions, tax issues, regulatory procedures and many others. By taking the necessary steps early on, you and your company can save yourselves significant time, energy and money. By allowing us to guide you, you can avoid the many pitfalls that can damage or delay your IPO. With Bouchard Fintech you can be sure that your IPO process is being handled by professionals.
After the IPO
In reality, an IPO is really just another beginning. After all it is called an Initial Public Offering and therefore it is the initial or first stage of a new reality. While the challenges of going public are many, there are other challenges that emerge once the process is complete. Here too, the team at Bouchard Fintech can provide help, assistance, guidance and support. We know the process and know what to expect once an IPO is completed.
As a publicly traded company the requirements and expectations are very different that when the company was private. Shareholders have rights and have certain expectations. The stock exchange and regulatory authorities have their own set of rules and requirements. The finances are subject to audit and have strict reporting rules. There is far more scrutiny that the company, now that it is public, will be subjected to.
Publicly traded companies are expected to issue timely and accurate reports. A failure to comply, a delay in reporting and/or errors in reporting can cause serious problems for the company and for the senior executives and board of directors.
Operating a Publicly Traded Company
Going from a privately held company to one that is publicly traded has been challenging. Now though there is a need to adjust to that new reality. Being public and having shareholders to answer to brings with it a new set of issues that must be mastered. You have to provide your shareholders with timely and accurate information and updates.
As a publicly traded company, you now have to continuously comply with the stock exchange requirements, disclosures, timely reports and audited financial statements.
Added to the above tasks, you have to keep a close eye on your share prices. You need to monitor trading volumes and stock trading trends. You need to bring value to the company and you need to give your shareholders good returns on their investments.
Since the company is now a publicly traded one, there is added scrutiny about the company and its reputation. The shareholders and stakeholders will be watching carefully. You and your company will be judged not only by what you do but also by how you are perceived. Publicly traded companies get to be viewed and evaluated by many factors. The more positively that a company is seen the more valuable its shares may become. Therefore, a good public relations campaign needs to be put in place and actively carried out. This is not a short-term issue but a long-term project that needs to be continuously worked on.
Additionally, a solid and well-thought out investor relations effort will also need to be initiated. Investor relations is not an area that can be taken lightly. A dedicated effort will have to be maintained in order to keep the shareholders informed and positive.
All of the above business matters and issues need to be handled correctly, accurately, professionally and in a timely manner. Once again, the team at Bouchard Fintech is ready and willing to help you and your company. We have the history, the knowledge and the expertise because we have done these tasks before. We know what to look for and we know how to effectively carry out all these various tasks and responsibilities. You can be sure that our team can turn all those challenges into accomplishments that your company and shareholders can be proud of.
Even after going public there is still a need for good financial management and potential new financial requirements. The Bouchard Fintech team is ready to support you in structuring your finances, in obtaining better loans and securing more favorable credit terms.
In time, a company may need to look at raising another round of financing. Here too, Bouchard Fintech stands ready, willing and able to help.
Regardless of the stage that your company is at, you can be sure that the Bouchard Fintech team is here for you. You can rely on us to continually be there with our knowledge, hard-work and expertise to help your business grow, improve and succeed.