The right way to Prepare for a Successful IPO

A successful BÖRSEGANG (ÖSTERR.) is the outset of an exciting chapter inside the growth of your company. Nevertheless , an BÖRSEGANG (ÖSTERR.) is not an automatic path to profitability and can be very difficult to regulate. It is important to be sure that your company and management group are totally ready to operate as being a publicly traded business before going general population. Many companies that rush into an IPO and find themselves not prepared for the post-IPO changeover are facing significant problems.

The most important consideration affecting success in raising equity capital is usually investor positive outlook, which results in higher IPO value. We measure this by percentage embrace shareholder equity by the end of the 12 months before IPO, divided by number of shares sold at the IPO (see the work below). The other most important factor is definitely firm efficiency pre-IPO, which can be measured by simply return upon assets in the years after issuance. We discover that higher ROEs ahead of IPO will be associated with the probability of success in raising fairness capital, but this relationship is weakly at the end belonging to the IPO years (see the figure beneath, panel A).

Achieving success in an IPO requires thorough preparing and effective systems to guide key capabilities, including entrepreneur relations, accounting, money, forecasting and more. It also needs the command and support of an successful board, which can be essential for keeping high levels of openness with investors. A good organization management system could actually help a company plan for an IPO, by providing real time KPIs and automated rule-based alerts.

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