Converting a private business into a public company entails adherence to certain requirements. In Singapore, the first and most important step to realize this goal is to offer IPO or Initial Public Offering. This is a procedure wherein the company invites prospective investors to the opportunity of buying shares. For the company owners, IPO could also be considered as the grand plan to accumulate capital, fund expansions and gain high branding value.
Owners of private limited businesses find the conversion attractive because of the privileges it offers. But business owners should remember that every privilege obtained has a corresponding setback and this includes the duties to the government and the public. This suggests that entrepreneurs need factual information telling if the conversion is good for the business or not. That needed information can be be provided by a competent consulting agency. A consulting agency offers a team of professional lawyers, accountants, underwriter and consultants that will launch the IPO.
A company that decides to convert from private to public undergoes a procedure called due diligence. This procedure is crucial in determining the company’s 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 consulting agencies that can directly manage the IPO to fulfill the requirement specified by the Singapore exchange market, while others simply assist in providing the company a reputable financial institution to lead the IPO. Whichever the case, an IPO requires two professionals: a lawyer and a Certified Public Accountant. The lawyer will handle all the legal aspects of registration and listing in the exchange market, and the CPA will lead the due diligence process, affirm the company’s readiness for public trade and help in the preparation for IPO launch.
Many consulting agencies also offer a public relations team that will focus on improving the company’s image. The service that a public relations team provide is crucial in selling the company to the investing public. A public relations team specializes in generating marketing collaterals for potential investors, money managers, and media professionals.