M&A IPO Readiness

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IPO Readiness

We help you navigate through the listing process and beyond – our Pre-IPO Lab and IPO Readiness Assessment provide you with a clear roadmap to deliver on requirements and overcome potential gaps.

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 - Evaluate

Are you an IPO candidate?

A strong IPO candidate is characterized by its own strengths but the ability to float is also triggered by market conditions at IPO: 

Start small, think big

Our Pre-IPO Lab provides you with transparency and strategic guidance to evaluate high-level IPO readiness at an early stage. The Pre-IPO Lab is an interactive workshop and white-boarding session to gain a common understanding of your current situation and to identify your challenges to prepare your organization for an IPO. Attendees of our IPO Lab are shareholders, Top Management and further Management levels of the IPO candidate as appropriate.

Our multi-disciplinary team provides the knowledge and jointly with you determines the IPO readiness status across the key areas:

  • equity story / markets / listing location
  • legal / tax & compliance
  • financial & accounting
  • operations & IPO-compatible organization

The IPO Lab is organized and moderated by Deloitte, held as a physical or virtual one-day session.

Phase 2 – Assess

IPO readiness assessment - Blueprint your path going-forward

Once you have evaluated your strategic options and decided to succeed with an IPO, we perform a detailed IPO readiness assessment to prepare you for execution. The IPO readiness assessment usually takes between two to three months.

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. The execution varies from six to 18 months, depending on your IPO readiness at project start. Complexity and timeline is highly dependent on any carve-out or separation processes required upfront to establish legal entity structure.

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 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.

Phase 4 – Sustain

Keep going – being public requires continuous change management

As a public company, you enter a new compliance and regulatory environment, which includes, amongst others, the compliance with regular and ad hoc publicity, the insider law and the publicity of shareholdings, the compliance with the respective Corporate Governance Codex, the implementation and regular review of early risk monitoring systems, etc.

Being public requirements are subject to change and thus require 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 best 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: 

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