IPO Checklist

STAGE 1: Your suitability for IPO

• Have you weighed IPO up against other types of equity finance, like Private Equity?
  Do you understand the pros and cons? Can you safely say that this is the right option for the stage your business is at?

• Do you understand the different markets and which one your business may be suitable for?
  There are a number of different public markets in the UK, including: The Main Market (home to FTSE 350), the High Growth Segment (for tech businesses) and AIM (for SMEs). AIM was created for scale-up businesses who are ready to take their business to the next level with a listing, but are not big enough for Main Market.

• Have you spoken to an adviser about your suitability?
  It’s never too early to get some advice and most Nomads or Sponsors back-weight their costs, so you don’t pay a penny until you have successfully listed.

• Will you suit life as a public company?
  Would you be comfortable releasing information from your annual accounts, half-yearly reports, directors’ share dealings, salary and tax?

• Can you build a viable equity story that’s going to get institutional investors interested and excited?
  Is your story compelling and comprehensive?

STAGE 2: Getting your house in order

• Do you have a strong handle on your growth plans?
  Do you know your growth percentage goals and how much money you’ll need to finance them?

• Is the corporate structure simple?
  Is all Intellectual Property (IP) under ownership of the company?

• Do you have the right team in place?
  Is your board properly structured? Do they have experience in this kind of transaction?

• Are you comfortable with the last three years of your financial information being audited?
  Do you have your results and performance data in order?

• Have you considered your tax structure?
  Are your personal wealth management plans also in order?

• Are you ready for a law firm to perform rigorous due diligence on all of the above?
  Do you have the documentation in place to prove it all?

STAGE 3: Preparing for an IPO

• Have you worked out your timescales?
  Do you know how long it will take? Do you have at least six months to spare before you want to start the process?

• Have you researched your Nomad or Sponsor?
  Have you spoken to multiple firms?

• Have you asked about your broker’s analyst?
  This is the person who will sell you as a public company, so you need to be comfortable with their abilities.

• Have you appointed a law firm, accountant, registrar and PR firm?
  All of these players will be crucial throughout the process.

• Do you understand the right time to come to market?
  When is your ‘window of opportunity’? How important is a ‘window of opportunity’ in your sector?

• Do you understand your shareholder mix?
  Are you comfortable with it? What is the total amount of your business to be floated?