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Should you consider an IPO?

Should You Consider AN IPO?

We caught up with James Thompson, associate director at finnCap to discuss the pros and cons of filing for an IPO. Watch the full video at the bottom of this page.

What are the benefits of being a listed company?

You can use your paper in different ways to accelerate your profile:

  • Acquire other businesses

  • Use your shares to place with investors to raise funds

  • Incentivise employees to stay within business and share on the upside

  • Gain additional prestige as you are:

  • Adhering to market guidelines

  • Showing financial discipline by publishing your financial forecast

Benefits of IPO vs PE

Valuation is generally higher with PE. When you IPO, your business should be lowest price it is valued at. PE would take control and have a larger steer for the business. IPO means you are able to control your shareholder base and retain control and vision of your business.

What is Dual Track?

Put simply, Dual Track is running an IPO and a PE trade sale at the same time. The benefit of this is founders have the possibility to make a decision later in the process as to which route to take. It also alleviates any burden of having both an IPO advisor and a trade sale advisor, as there may be friction between the two.

Best advice for entrepreneurs raising capital

Engage with advisors from an early stage, not necessarily on a paid basis, but the earlier they are brought into the process, the earlier they can give you a steer on your founder journey. They can help advise on the right paths to take and introduce you to the right people.

Watch the full video below: