How do you know if this is the right time to adopt this alternative?

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bitheerani319
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Joined: Mon Dec 23, 2024 3:33 am

How do you know if this is the right time to adopt this alternative?

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One of the main signs that the time has come is when a company wants to grow but does not have enough resources to do so. This is usually when the business is already very successful and needs more capital to finance its expansion in the market, and an IPO is considered the best way to reach this stage.

However, this analysis must consider some pros and cons, mainly in kuwait phone number list to the liquidity levels of the equity, the return on investment , the reduction of the company's costs versus how much it will spend to carry out the IPO processes.

This account also includes the resources used after the opening to maintain it, such as investments in transparency and regulatory measures, planning for growth, etc. If everything is in order and the organization is certain that it will meet these responsibilities, then it is time to go public.

What are the essential precautions to take when going public? Check out the top 5!
It takes an average of eight months to three years to go public, from the beginning of the planning until the shares are available on the stock exchange. The entire process is divided into before and during the opening, as it is necessary to take care of the documentation, analyze the company 's conditions through external advisory services and consultants and finally start the application.

With all this work, management must be aware of each step to avoid losses or giving up along the way. Below, we will present 5 precautions. Check it out!

1. Define the team
In this first phase, we already have the fact that there was prior planning regarding the opening of the company. Now it is time to choose the professionals who will take care of both the legal procedures and the collection, organization and gathering of documents to carry out the opening.

Please note that this will include both accounting and financial information, including balance sheets and financial statements. The members of this team range from accountants, consultants and lawyers to investment banks and corporate restructuring banks .

2. Prepare the documentation
In the process of putting together the documents, it is necessary to clarify that, in addition to gathering the statements and placing them in defined standards, it will be necessary to send them to external and independent auditors for analysis.

Here, it is necessary to pay attention: one of the reasons for the delay in the IPO process is precisely because three years of audited financial statements must be presented. What happens is that some businesses do not have the habit of doing this, and it is necessary to wait until the audit has thoroughly analyzed these documents.

The company's bylaws will also undergo restructuring, as the company will be going public. In this sense, it will be necessary to determine the characterization and rights of the shares, the volume of resources to be raised, the valuation and the attributions of the shareholders' meetings and the board of directors.

3. Register and list
With the initial steps complete, it is time to formalize the IPO, that is, to submit a registration and authorization request to the CVM (Brazilian Securities and Exchange Commission) for the sale of shares. In addition, the company must register on the BM&FBovespa listing and, finally, notify the market of the intention to open the business, disclosing the request to the CVM.

4. Prepare the Prospectus
Once the request is made, it is time to prepare the IPO Prospectus. This document should contain information about the business's operating history and the results of the last three months. In addition, it should be published and open for comments. That is why it is important to gather the statements and other reports about the business's performance from the beginning.

The Prospectus is essential, as the information contained therein is responsible for making early investors understand that the company is opening its capital and why they should invest in it.
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