Before becoming a public company, you have to look like one
Deciding to take your company public is a decision that will truly transform the way you do business and, if done right, will enable you to unlock new business opportunities while driving sustainable growth.
But turning a privately owned enterprise into a publicly traded company through an Initial Public Offering (IPO) is a rigorous process. Going public requires significant effort as well as the different branches of your business working together towards a common goal. It can be a daunting and difficult task for those not prepared.
So where do you start? And how do you know if going public is right for your business?
- Dean Braunsteiner, Partner, National IPO Services Leader, Toronto
Have you evaluated if going public is your best option? Assessing your company's readiness to go public is a critical first step.
Before you embark on this journey, you have to:
Review objectives and capital needs
Outline advantages and disadvantages of going public
Explore all available options
Get guidance on stock exchanges in Canada and the U.S. (including SEC requirements)
Assess financial statements and reporting systems
Gain insight into costs and cultural changes
Explain the process and pitfalls
Establish a reasonable timeline
To make the transition from private enterprise to public company a smooth and successful process, you need to “get your house in order” by designing and following an optimal action plan.
To develop the ideal IPO action plan, you have to:
Make sure financial statements are in order and ready for prospectus
Get advise on necessary management restructuring
Establish an IPO advisory team
Look for guidance on professional IPO relationships
The offering phase is a juggling act within a short timeframe. You will need to work alongside your underwriter, legal counsel and advisors to execute the right IPO process.
For the optimal execution of your IPO process, you have to:
Review your preliminary prospectus for internal consistency
Make sure the presentation of your financial statements and other financial data meets all disclosure requirements
Obtain financial information and assistance in drafting the critical Management Discussion and Analysis (MD&A) in your prospectus
Anticipate and respond to issues raised by regulators both in Canada and the U.S.
Seek help with the due diligence process
Prepare for necessary disclosure and reporting requirements necessary as a public company
Like any journey, going public requires careful preparation. Our IPO Services team includes professionals with technical skills and industry expertise to help you better understand what it takes to go public, guide you through the entire IPO journey, meet your requirements as a successful public company and turn your vision into a reality. Start your journey by learning what you'll need to consider at every stage, before and beyond your IPO.
We can also help plan for the consequences of public life:
The market for initial public offerings paused for a breather in the first quarter of 2018 as issuers and investors assessed the implications of interest rate hikes, recent U.S. tax changes, market volatility and threats to world trade. But if the pipeline of new issues is any indication, the market won’t stay quiet for long.
The 2017 market for initial public offerings (IPOs) in Canada raced across the finish line to post a $5.1 billion five-year record for total proceeds raised from new equity issues, the annual PwC survey revealed.
A trickle of new issues in the fourth quarter saved 2016 from being a complete washout for initial public offerings on Canada’s largest equity exchange but couldn’t redeem the year as the worst in the nearly 20-year history of the PwC survey of the IPO market.
Dean Braunsteiner joins BNN for a look at the IPO market performance in the first half of 2017. He offers his outlook for the rest of the year and perspective on the key economic drivers.
There were five junior mining IPOs on the TSX Venture Exchange in 2017's first half compared with none in 2016's first half.
Dean Braunsteiner, national IPO leader with PWC Canada, speaks about the attractiveness of Canada's IPO market now that the U.S. election is out of the way, particularly in the tech space.
Dean Braunsteiner talks about the Canadian innovators that helped lift the IPO market's performance in the past few months. He also talks about why retail and manufacturing could be the sectors to watch for new issues.
[This publication was published in 2014] The Canadian market for initial public offerings in Canada during the past five years has been a story of contrasts: at times encouraging, then disappointing, both optimistic and uncertain. Despite periods of feverish activity, the market was unable to sustain meaningful momentum.
Insight into the costs of an IPO can help outline an IPO to the board of directors, employees and other stakeholders within the company.
PwC's quarterly report providing analysis of and trends in technology IPOs around the world.
Quarterly survey tracking the volume and value of IPOs on Europe's main stock exchanges. Compiled by our London Capital Markets Group, it surveys all new primary market listings on Europe's principal stock markets.
Undertaking an initial public offering can catapult your company to the next level – yet windows of opportunity open and close quickly. PwC can help you leverage the right insights to make the right moves – at the right times.
PwC provides independent guidance to companies in the process of going public and to already listed companies in assessing their position in the equity capital markets.
Dean Braunsteiner
Partner, National IPO Services Leader & National Assurance Leader, Mining
Tel: +1 416 869 8713
Email
Geoff Leverton
Partner, National Capital Markets & Accounting Advisory Services (CMAAS) Leader
Tel: +1 416 815 5053
Email
