A successful IPO is the start of an thrilling chapter in the regarding your company. However , an GOING PUBLIC is no automatic way to profitability and is very difficult to handle. It is important to make sure that your company and management team are fully prepared to operate being a publicly traded organization before going people. Many companies that rush in to an BÖRSEGANG (ÖSTERR.) and find themselves not prepared for the post-IPO transition are facing significant concerns.
The most important aspect affecting success in raising value capital is investor confidence, which results in bigger IPO values. We assess this by percentage increase in shareholder equity at the conclusion of the day before GOING PUBLIC, divided by the number of shares sold at the IPO (see the number below). The 2nd most important factor is normally firm performance pre-IPO, which is measured by return upon assets inside the years following issuance. We find that higher ROEs just before IPO are associated with the probability of success in raising fairness capital, although this romantic relationship is fragile at the end of this IPO year (see the figure beneath, panel A).
Achieving success within an IPO needs thorough prep and solid systems to aid key functions, including entrepreneur relations, accounting, money, forecasting plus more. It also needs the management and support of an powerful board, which is essential for keeping high successful ipo levels of openness with buyers. A good organization management system can help you a company get ready for an GOING PUBLIC, by providing real time KPIs and automated rule-based alerts.