There is a critical point in the life cycle of any growth business when new funding is required and/or a third party, or new investor, can help take the business, research and products on to the next stage in its evolution. For some investors and businesses, this represents an exit and a change in ownership while, for others, fresh investors will bring new capital to the business to help it move on to the next level. Often, companies are uncertain which of these two key options, or variations thereof, might be required or the most likely and, therefore, being prepared for either is critical.

Whichever route you are going down, and many companies will run parallel processes, there are no regret actions that can be taken to make sure you are prepared and avoid value erosion. We find that key considerations for many companies are:

IPO and acquisition processes:

• Is there an anticipated exit plan such as an IPO, trade sale or additional fundraising within the next 24 months?
• If the preferred exit strategy is an IPO, have you determined a preferred exchange?
• Is there a work plan in place across the various functions, such as financial, legal, tax and HR to meet critical deadlines?

Financial statements and projections:

• Do your current financial statements meet the requirements for the company’s desired exit strategy?
• Have these financial statements been audited under the standards required (i.e., public company standards)?
• Have these been prepared in accordance with the appropriate reporting standards, and will they withstand due diligence or the rigours of a public company audit process?

Internal controls:

• How formalised are your control environment, governance, management review and IT system controls?
• Is your control environment fit for public company reporting?
• Will the due diligence process shine a light on weaknesses that requirement investment and erode value?

Taxation:

• Does your current tax structure minimise tax exposure for your investors, employees and potential acquirers?
• Is your tax structure efficient or will it erode value?
• What tax issues will you need to consider on a future exit event?

These and a host of other considerations need to be carefully considered to ensure seamless execution of your transaction and to prevent value erosion.

Register today and we will talk you through exits, IPO processes and filing requirements, acquiror perspectives, the due diligence process, and the tax implications of and considerations for your potential transaction.

Attendance: Attendance at this event is free of charge and by invitation only. Please email Ruby Sharoon-Khan who will register your attendance to the workshop and send over the relevant event details.