An Initial Public Offering (IPO) offers companies a promising strategic option for long-term financing through equity. An IPO, however, is a very complex and challenging project, both in terms of time and content, which should not be underestimated. The necessary measures to get ready for an IPO lead, for example, to an increase in the workload for employees since the normal day-to-day business must continue to be handled in addition to the IPO preparation. It should therefore be ensured that the numerous interdependent topics and tasks are prepared, analyzed and managed in the best possible way.
Getting a company ready for an IPO, its public listing and ability to be publicly listed usually requires changes in the entire company, the organization and the corporate culture. One reason for this is that publicly listed companies are subject to greater disclosure obligations and greater transparency. Furthermore, the relevance of compliance and corporate governance issues is rising.
Challenges to IPO Readiness
The main challenges to getting a company ready for an IPO include the following points.
- The conversion of accounting to IFRS and the ensuring of future reporting obligations
- Implementation of a risk management system (RMS)
- Ensuring other requirements: Preparation of an IPO due diligence and a stock exchange prospectus, execution of numerous valuations, establishment of an internal control system (ICS)
- Project management
In addition, internal processes, both for going public and being public, must be optimized or often created for the first time due to considerable disclosure obligations and fixed schedules for reporting.
IPO Readiness – FAS AG Services
FAS AG has extensive experience in IPOs and M&A transactions for companies of all sizes and in a wide range of industries. We offer independent expertise and professional advice as equals. FAS AG clients benefit from the highest quality and our unique focus on the client. The IPO-experienced specialists at FAS AG, with know-how from numerous IPOs and IFRS conversions, will support you in identifying conversion issues and point out possible alternatives.
If an IFRS conversion is required in the course of an Initial Public Offering, FAS AG also supports its clients here and provides the FAS Conversion Tool for a system-supported conversion or supports the mapping of parallel accounting in your ERP system. In addition to support for the entire IPO (IFRS conversion, risk management, due diligence, prospectus, etc.), our range of services also includes ongoing support while being a public company. This includes, for example, support in the preparation of future financial statements, ongoing IFRS accounting or upcoming M&A activities.
Other services provided by FAS AG in connection with preparing for an IPO include the development of a risk management system (RMS) and the implementation of an internal control system (ICS), the preparation of the stock exchange prospectus (including management discussion and analysis), the performance of an IPO due diligence and support in the area of investor relations.
Furthermore, FAS AG will ensure compliance with other legal requirements, such as the preparation of a remuneration report, segment reporting, calculation of earnings per share, further requirements for the management report and, if applicable, extended requirements of the audit obligation.
Our Project Approach for IPO Readines