Stock Market Flotation
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04 October 2013
As the Royal Mail and Twitter prepare to list on the stock market, the
question as to whether your business is suitable for public listing
should not be overlooked by any business owner. If a business owner is
interested in taking his business public he needs to consider the
advantages and disadvantages for floating on the stock market:
- Places a value on your
- Helps you raise capital, so
you can recoup some of your investment or develop the business further.
- Enhances your public
presence, adding value to your brand and reputation.
- Makes it easier for other
venture capitalists to invest and realise the returns on its
- Increases the types of
incentives you can give to employees.
- Your business may be
affected by the fluctuations in the market and factors not in your
- There is a need for
transparency and your
business will need to comply with all the regulatory and corporate
- As shareholders have
invested in the business,
you will now have a responsibility to consider their interests.
- Depending on how much of the
company is floated on the stock market there may be a loss of control.
- Increased demand on the
management team, as
they will need to deal with investors, assist with the floatation as
well as manage public relations.
- The cost of listing your
company can be great
and there is likely to be ongoing costs to ensure all regulatory
requirements are met, investors expectations are managed and the
likelihood of an increase in professional fees.
Other factors to consider prior to going public include:
- Ensuring your company is in
a strong financial position.
- You have a track record of
delivering growth and profits.
- The sector in which your
business operates is attractive to investors.
- You can set out a strong
deliver a strategy of growth and provide investors with a strong return
on their investment.
- Is your management team
capable of handling the floatation and running a public company?
- Which method of floatation
and market is most suited to your business?
- Which stock market do you
intend to list your company on?
- Are the market conditions
suited to maximise the amount of capital you can raise?
Any business planning on listing on a stock market need to consider the
above factors and appoint suitable advisers to ensure any listing
completes with a minimal amount of problems.
If you're interested in listing your company or in buying or
selling a business and would like to find out more, please contact
Izaz Ali on firstname.lastname@example.org.
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Article Published/Sorted/Amended on Scopulus 2013-10-28 10:06:06 in Business Articles
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