IPO Readiness

From an inside out perspective

The IPO framework is complex, with many different intrinsic and extrinsic aspects driving the listing process, some of them being the IPO motives, ownership structure, IPO target structure and the listing location. We look at your transformational IPO journey from an inside out perspective:

WHY you should consider an IPO a viable option:

• continued growth path
• funding access
• brand awareness & image
• gradual exit
• talent attraction / employee incentives
• succession planning

HOW an IPO turns real:

The IPO journey truly is at the DNA of your company – requiring well-orchestrated capacities and resources. We accompany your IPO from evaluation to execution and beyond

WHAT an IPO means to you:

Float company shares & sustain being public

Phase 1 - Assess

Are you an IPO candidate?

A promising IPO candidate is characterized by its own strengths; however, the ability to float is also triggered by market conditions at IPO: 

How to get started

We help you to get a clear understanding of IPO and capital market requirements and what it takes to fulfill them, with our IPO Lab and / or IPO readiness assessment.

The Deloitte IPO Lab

Our half-day IPO Lab provides you with transparency and strategic guidance based on our holistic IPO framework. The IPO Lab is an interactive workshop and white-boarding session to gain a common understanding of your current situation and to get a first view of your challenges to prepare your organization for an IPO.

The Deloitte IPO Readiness Assessment

Once you have evaluated your strategic options and decided to continue your IPO track, the next step is to blueprint you path going forward. Our detailed IPO readiness assessment positions you to enter the preparation and execution phase. Depending on the depth of analysis and the scope (holistic vs. modular approach), an IPO readiness assessment can take between 4-8 weeks.

Phase 2 – Prepare

The IPO readiness preparation phase focuses on the transformation from a private to a public company. This may include, amongst others, changing the legal structure, converting the GAAP (e.g. to IFRS or US GAAP), establishing or adapting the governance systems (i.e. Risk & Compliance Management or Internal Control Systems) and embedding ESG into the organization. The complexity and interdependency of such measures requires a holistic, content-driven IPO program management.  

Preparation efforts can vary significantly (e.g. 6 – 18 months), depending on your IPO readiness at project start. Complexity and timeline are highly dependent on any carve-out or separation processes required upfront.

We provide hands-on support to close identified gaps towards IPO & capital market readiness, to manage complexity and interdependencies, while minimizing disruptions for the day-to-day business. 

Here, we conduct deep-dives, starting with planning and information gathering activities through discussions with company management and further experts per each focus area. We set up work streams to look deeper into the gap analysis and mitigating measures and to verify the IPO timeline on a bottom-up top-down approach. This involves further participants on functional level and aims at preparing detailed blueprints for your transformative way towards IPO.

Phase 3 – Execute

Manage the IPO preparation inter-disciplinary & get listed

The execution phase comprises the transformation from a private to a public company, the preparation of registration statements, marketing the offering and the listing itself. 

Our tool-based approach guides you through the IPO process, increases data quality and availability, and reduces complexity. Deloitte.Engine IPO is a holistic tool for your IPO journey. It enables analyses alongside all financial dimensions of an IPO as well as strategic and organizational support, such as assessing IPO readiness, developing a roadmap going-forward and tracking progress. We provide you with preparation & execution support in all respective dimensions and areas of the IPO lifecycle.

How to test market interest and benefit from a competitive process?

IPO candidates often consider a dual-track process attractive – acknowledging higher spend on capacities and resources. 

Dual-track processes are intended to provide maximum flexibility and increase deal value and certainty. Typically, PE and VC-backed companies thrive for dual-track processes to make use of the competitive M&A process – potential buyers are forced to compete with the company’s option for an IPO.

Lead banks for the M&A and IPO process typically are the same and can leverage on the understanding of the target and investors documentations prepared about the target, e.g. populated virtual-data-room, draft prospectus etc.

An alternative to a dual track is a sequential process, with an M&A transaction as a first step and the IPO process at a later stage. This strategy can be of interest for IPO candidates with a strong future growth path and financing or partnering need.

Phase 4 – Sustain

Keep going – being public requires continuous change management

As a public company, you enter a new regulatory environment, which includes, amongst others, the compliance with regular and ad-hoc publicity, insider trading restrictions and disclosure of shareholdings, the declaration of compliance with the Corporate Governance Code and the implementation of an appropriate and effective risk management system.

Being public requirements are subject to change and thus necessitate continuous monitoring and change management. Examples are changes in accounting standards, corporate governance structures, legal and tax regulations as well as stock exchange obligations.

Fulfilling requirements and better practice standards for public companies is critical in order to develop and maintain a strong relationship with the key members of your financial community and to manage public reputation.

We provide support in adhering to all required dimensions: