Flotations

A flotation is frequently referred to in the venture capital world as an exit event. Although this is can sometimes be the case for an early stage investor, it is more often just the beginning for the company's management.

A public quotation will provide access to public funds and an ability to finance acquisitions by the issue of securities. Shareholders will have liquidity in their shares and a way of gauging and of course realising the value in their shares.

These benefits come at an administrative and a financial cost. The new status of the company will come with enhanced regulatory requirements and for the chairman and managing director particularly some new tasks in dealing with The Stock Exchange, other regulatory bodies such as The Takeover Panel and with institutional shareholders.

A flotation will take a great deal of preparation and co-ordination between financial, accounting and legal advisers and can take a substantial part of management time while it is in progress. For management who have not been directors of a public company before there is much to learn about the regulated environment.

Whether we are taking an existing client through this phase or helping a new client, our direct experience of dealing with these issues enables us to lead them safely through the process and on to the next stage in the company's growth.