Friday, 7 October 2011

Unique Content Article on IPO,Public Trade,Publicly Traded Company,Business Funding

Why A Consulting Firm Is Needed When Launching IPO


by Cherry Murray


In Singapore, the first and most important step to convert a private limited business into a public company is to conduct IPO or Initial Public Offering. This is the period when the company sells stocks to prospective investors. Company owners could also consider this as their grand plan to accumulate capital investments, finance expansions and establish a respectable company image.

Private businesses in Singapore go public because of the numerous perks entrepreneurs can get from it. But entrepreneurs should also remember that the perks public companies get is matched with certain setbacks, among which is the long list of responsibilities to the government and the public. To make sure that the conversion would be worth it, business owners should initially seek the service of a consulting firm. If going public seem a wise decision, consulting firms can provide a professional team of lawyers, accountants, consultants and underwriter that will take charge of launching the IPO.

A company that decides to convert from private to public needs to undergo a procedure called due diligence. This procedure helps the company assess its conditions and preparedness in terms of finances, operations and competitiveness. The information derived from the analysis will be the basis of the company's official profile to the public as well as its value in the Singaporean exchange market.

There are some consulting agencies that can directly manage the IPO to fulfill the listing requirements of the country's exchange market. There are also firms that simply help the client company find a reputable financial institution to lead the IPO. Either way, client companies would certainly need the service of a lawyer and a Certified Public Accountant. A lawyer takes charge of all the legal aspects of registration and listing in the country's exchange market, and a CPA supervises the due diligence process, asserts the company's readiness for public trade, and assists in the preparation for the IPO launch.

Companies can also add a public relations team in their list of must-seek services when a private business decides to become a publicly traded company. The main responsibility of a public relations team is to produce marketing collaterals for potential share buyers, money managers and media professionals.




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