Are you considering going public?
The initiation of an initial public offering (IPO) and its successful completion requires strategic planning, understanding and management of the potential risks involved in such a process.
An IPO is an important event in a company's lifecycle. An IPO can increase a company's financial strength, provide capital to fund growth, attract and retain talent through equity stakes, and enhance the company's profile. However, an IPO may not be the right strategy for every company; an IPO presents a new set of challenges, including new financial reporting and internal control requirements, accounting adjustments, governance and process design.
An IPO requires intensive preparatory measures that demand a lot from a company and often has to be carried out under considerable time pressure. Although companies face different challenges in their IPO process, experience teaches us that the common themes are:
Extent of resources
The IPO process requires intensive effort over extended periods of time with tight deadlines. You also need to focus your attention on running the business. It is extremely important to have sufficient additional resources to meet the ‘business as usual’ requirements and additional workload associated with the IPO process.
The IPO preparation process involves identifying, reviewing and processing a lot of information to be provided to the support deal team and forming part of the relevant IPO documents. This demands a lot of analyses and time from your company. Your current teams may not have the capacity and skills needed to handle this.
Given the complexity associated with an IPO, you will need a range of skilled employees or professionals to support your IPO process – for financial reporting, tax, legal, internal controls, investor relations, etc. Hiring all of these skills and creating an internal team may not be feasible in the short term.
By using a seamless preparation process, the deal team can ensure that its numerous workflows are streamlined. Solid project management is a must to ensure a successful and timely completion of all required tasks and to avoid duplication of work. With these challenges and complexity in mind, you need a reliable, independent IPO advisor who can guide you through the entire process and support you on your IPO journey.
SPAC has become a preferred way of listing companies for many experienced management teams and sponsors. Attached you will find our flyer and brochure with information about a SPAC transaction and how we can assist you in such a process.
How can KPMG help?
At KPMG, we have put all relevant skills together into a comprehensive solution to provide you with all the support and answers you need when evaluating your IPO journey. We offer a wide range of advisory services to help you with your IPO.
We can help you determine whether an IPO is the right option for you. We conduct a thorough IPO readiness assessment, getting to know your business by identifying your needs and potential observations. We help you develop your equity story, ensure that your financial statements comply with legal requirements, advise you on your tax structure and by way of developing a structure with robust and resilient internal controls. We prepare you for the IPO, but we also support you after the IPO to ensure that you have the right structure to operate effectively as a publicly traded company.
Our professionals have IPO experience and can assist with technical support to ensure compliance with legal requirements. We can help you with an efficient approach to selecting financial information required to be disclosed in the prospectus and periodic filings.
KPMG is well positioned to serve companies worldwide. Our international KPMG network can support cross-border transactions and, as such, can also be of service in providing added value in the IPO process.