Floating Your Company: The Essential Guide to Going Public

Contents......Page 5
Contributors’ notes......Page 11
Introduction......Page 23
I To float or not to float – planning your company’s future......Page 25
Summary......Page 27
Introduction......Page 28
The exuberant 1980s......Page 29
The benign environment......Page 30
The end of the bull market......Page 31
AIM......Page 34
Looking forward......Page 38
Notes......Page 40
Summary......Page 43
Types of company whose shares can be admitted......Page 44
Corporate governance......Page 45
Track record......Page 46
Lock-in requirements......Page 47
Market maker or broker......Page 48
Introduction......Page 49
Issues to consider......Page 50
Conclusion......Page 57
Introduction......Page 59
Alternative routes to raising cash......Page 60
The multi-track process......Page 61
Case study: Land of Leather......Page 62
Alternative markets......Page 65
Introduction – basic choices......Page 67
London Stock Exchange plc......Page 68
Legal framework......Page 69
Admission criteria......Page 71
Introduction......Page 74
The success of AIM......Page 75
Overseas alternatives......Page 76
Admission requirements......Page 77
Introduction......Page 79
Why a public flotation?......Page 80
AIM: an international market......Page 81
AIM’s regulatory approach and joining AIM......Page 82
Day one of trading – and beyond......Page 84
The outlook for AIM......Page 85
Overview......Page 87
Reasons for choosing PLUS......Page 89
When a company is ready for PLUS......Page 90
Seeking admission to PLUS......Page 91
The PLUS advisory team......Page 93
Life as a public company: continuing obligations......Page 95
Conclusion......Page 96
ShareMark......Page 97
How ShareMark works......Page 98
The ShareMark admission process......Page 99
Information required......Page 100
Shareholder communication and meetingongoing shareholder requirements......Page 101
Conclusion......Page 102
Market performance......Page 103
The benefits of an IEX quotation......Page 105
The admission process......Page 106
The fast-track route to IEX......Page 107
Admission countdown......Page 108
Life after admission......Page 109
Conclusion......Page 110
The flotation process......Page 111
Selection of advisers......Page 113
Advisers’ roles......Page 114
Appendix: List of documents for a flotation......Page 118
Introduction......Page 121
Who may act as a nomad?......Page 122
What a company should expect from its nomad......Page 123
What the London Stock Exchange expectsfrom a nomad......Page 124
Conclusion......Page 126
Introduction – general role......Page 127
The particular role of the legal advisers......Page 128
Due diligence......Page 130
Documentation......Page 131
Continuing obligations......Page 132
Introduction......Page 133
Are you ready for flotation?......Page 135
Financial due diligence......Page 137
Other comfort letters......Page 138
Published historical financial information......Page 139
Conclusion......Page 140
Notes......Page 141
Nomad/broker relationship......Page 143
Areas of responsibility – summary......Page 144
Role in preparing for the IPO......Page 145
Preparation for IPO......Page 146
Role post-IPO – the secondary market......Page 147
Responsibilities......Page 151
What a company should look for from its brokerand nomad......Page 152
Post-IPO......Page 154
Potential problem areas......Page 155
Golden rules for companies when dealingwith advisers......Page 156
What the broker is looking for......Page 157
Due diligence:what it is and whatit should cover......Page 159
The vendor’s perspective......Page 160
What due diligence should cover......Page 161
The checklist......Page 163
Summary......Page 165
Introduction......Page 166
Earnings-based valuations......Page 167
Valuation in practice......Page 170
Introduction......Page 172
Function of warranties and indemnities......Page 173
Sponsor’s indemnity......Page 174
Tax indemnity......Page 175
Limitation on liabilities......Page 176
Rights of contribution......Page 177
The flotation process......Page 179
Hiring a PR company......Page 180
Whom should you be talking to?......Page 181
How your PR company will help you prepare......Page 185
Hitting the news......Page 186
Living with the listing......Page 187
Introduction......Page 189
Main Market......Page 190
AIM......Page 201
Non-compliance......Page 203
Where has it come from?......Page 205
What does the Combined Code say?......Page 207
Notes......Page 209
A whole new world......Page 210
The calendar gives you a structure......Page 211
Announcement day......Page 212
Other events, better relations......Page 214
Dealing with journalists......Page 215
Summary......Page 216
Regulatory environment......Page 217
Shareholder approval......Page 219
The class tests under the Listing Rules......Page 220
Classification of transactions......Page 221
Related party transactions......Page 222
Requirements of the AIM market......Page 223
Class tests for the purposes of the AIM Rules......Page 225
Other rules and regulations for listed and AIMcompanies......Page 226
Summary......Page 227
Your corporate guardian......Page 228
‘First’ or ‘maiden’ results......Page 229
Attracting shareholders......Page 230
Corporate transactions......Page 231
It’s floated – now what should I focus on?......Page 232
Important corporate regulation......Page 233
Shareholders’and directors’considerations......Page 235
Plan well in advance of any flotation......Page 237
Preparing for a listing: what to float......Page 238
The tax consequences of different markets......Page 239
Employee incentivization......Page 240
Conclusion......Page 243
Background to pension arrangements......Page 245
Stock market valuation of pension deficits......Page 246
Equity analysts......Page 248
Actions before a float......Page 249
Summary......Page 250
Why choose AIM?......Page 251
Practical considerations for the float......Page 253
Continuing obligations......Page 257
Conclusion......Page 258
What is a public to private (PTP)?......Page 259
The history of public to privates in the UK......Page 260
Is my company suitable to be taken private?......Page 261
Why private equity houses target listed companies......Page 263
How to select a financial adviser......Page 264
The public to private process......Page 265
Conclusion......Page 267
Notes......Page 268
Appendix:Contributors’contact list......Page 269
Index......Page 275