La listing on the stock exchange has always represented the "great opportunity" for companies that have the ambition to grow. Not only to raise risk capital that will never have to be returned to those who signed it, but also because it is a showcase in which the company presents itself in the eyes of all others: suppliers, customers, public opinion, other companies, investors institutions, bankers and consultants. But how to get listed on the Stock Exchange?
However, not all companies may be attractive to investors and consequently may pass the "examination" of the supervisory authorities. First of all, it is necessary to present a good "equity story", that is, to present one winning strategy which suggests growth in value, one transparent management as well as an intelligent and optimal use of the resources that the company will collect on the market.
Obviously there are not many companies that are already ready for listing: in many, very many cases there is all the potential that would be needed but it must be appropriately expressed and the management must be suitably prepared to show itself up to the declared objectives, because in practice L'IPO transaction (initial public offering) functions. And here a central figure intervenes in the listing process, who apparently is not essential in the roles envisaged to fulfill all the steps, but who in reality represents the "enabler" of the process and who constantly monitors the quality of the work in progress.
The 4 "diligences" to be listed on the Stock Exchange
It is true, in fact, that in order to go public, companies must pass the famous 4 "diligences" (the legal, That fiscal, That accountant And that of business, for each of which it is necessary to appoint professionals among those who are "accepted" in the environment of the Stock Exchange). But entrepreneurs must also be able to recruit a bank or a securities brokerage firm to cover the roles of Euronext Advisor (who supervises on behalf of the stock exchange authorities), of "global coordinator" (who places the securities), and of "specialist" (who undertakes to market listed securities). And above all they must be able to attract investors (including some that are necessarily institutional), express the highest possible corporate value, and present themselves capable of continuing the growth path even in the years following listing.
A good advisor and communication strategy
Already from these considerations it can be understood that putting together a "dream team" suitable for the tasks to be performed is not exactly so immediate. The experience of a good advisor for the quotation it can help a lot, both in evaluating the quality of the subjects and in limiting their cost to the minimum possible. But there's more: to be able to go on the stock exchange in the best way it is not enough to "tick the boxes" of the obligations envisaged, but it is necessary to express a real communication strategy, capable of centering the meeting between the prospects for business development and the needs of those who invest, which vary a lot depending on the market moment. Which makes it really useful to have qualified advisors on your side.
Listing on the Stock Exchange: timing
The timing to be able to land on the list of Business Square it can therefore be understood that it is not very short: it ranges from a minimum of 4-5 months for world champion companies capable of being practically ready, up to a maximum of 12-15 months for those that do not yet have any management control system, and who must first of all prepare by starting to write a "business plan" (at the basis of every other company document) and at the same time must begin to obtain the first certification of the financial statements.
A good reason to review your business organization
However, not all evils have a silver lining, since very often the entrepreneurs who venture down this path take advantage of it to profoundly review their business organization, the setting of the business model, and sometimes even the market strategy and the sources of acquisition of raw materials, semi-finished products and outsourced manufacturing. Not to mention the almost certain revision that will occur as a result of the aforementioned preparation in the fields of financial strategy, or the equally probable revision and optimization of the net working capital that occurs after examining in depth the valuation issues. Reflections (consequent to the review of the business plan) concerning a more careful assessment of the effective opportunity to proceed with specific investments, whether in production, marketing or technology, cannot be ruled out either.
Get listed on the Stock Exchange? Tiring path but full of opportunities
In short, the path that can lead to companies to be listed on the stock exchange it risks being very tiring but full of possible "collateral" results deriving from the important sieve that the listing procedures impose on companies and their internal management, governance and performance review systems. Lastly, not to mention the very useful comparison, when one gets to the end of speaking with possible investors in the so-called "road shows" or in the immediately preceding phases, between the entrepreneur and third-party investors, whose questions often represent a moment of extremely high strategic consulting, which derives from the fact that investors, in evaluating the opportunity, place themselves on the same side as the entrepreneur to understand if they share their strategies!
Obviously, with these lines we cannot advise all companies that can boast growth expectations to be listed on the Stock Exchange. But certainly the process of approaching the objective helps companies a lot to question themselves, and to educate themselves to start a dialogue with the capital market, even if only to issue bonds or to study mergers and acquisitions.
