IPO pre- deal

IPO execution

Internal preparation

What do highly successful IPO

companies do?

IPO post-deal

IPO design, concept and placement with external team

Prepare early

10

Day-one readiness

IPO: When the window of

opportunity for an IPO opens,
winning companies are ready
For fast-growing private companies seeking
to raise capital, an Initial Public Offering
can be a superior route to funding growth.
While challenging market conditions
are here to stay, companies need to be
fully prepared to leverage the window
of opportunity for an IPO, whenever it
becomes available. If you are leading a
company that is preparing to go public
within the next few years, you have to take
into consideration several nuances: the
strength and buoyancy of capital markets,
current economic indicators, and your
companys performance.
Notwithstanding mega-economic trends
and conditions, you need to ask very
practical questions if you are contemplating
an IPO: how do I prepare properly for the
IPO transaction; how do I cultivate worthy
investment in a dynamic environment
and steer my business to success as a
public company?
EY is one of the leading advisors to
companies considering an IPO. Not only
have we guided numerous companies
through the IPO filing process, but we have
also helped them improve tax structures,
compensation plans, business processes
and controls, corporate governance
structures and more. That gives us a
tremendous perspective in guiding you
through the IPO transaction and beyond.

How do I construct an IPO plan? How do

I establish the right team, processes and
infrastructure? How do I build a strategic
and investor relations function? What are
my responsibilities for the road show and
post-transaction?
All of these questions and more are
answered by our experts, comprising
experienced executives who have
undertaken IPOs, as well as advisors critical
to the process.

IPO: Is your company ready?

To achieve strategic targets, a company will
require access to funds. You need to take
time to think and explore various funding
options available to help your business
grow. Floating an IPO is one of the primary
ways to access capital. Do not plan to go
public because you think it is the end of
the game, but know that it is indeed the
beginning of a serious journey.

No one will tell you that going public is

easy, but the rewards may be monumental.
The key considerations here are advance
preparation, experienced guidance and
effective execution.

Companies that have completed a

successful IPO know that the process
involves a complete transformation of
the people, processes and culture of the
organization from a private enterprise to a
public one.

EY will be delighted to guide you through

your IPO journey. We wish you every
possible success!

So, how does a company begin the allconsuming task of preparing to go public?
It is up to the CEO and senior executives to
strike the right balance between executing
the IPO transaction and managing the
day-to-day operations of the company. In
the life-changing journey from the private
realm to public markets, senior managers
face numerous leadership challenges that
test the readiness of their business to go
for an IPO. Therefore, the key question that
a CEO and senior executives need to ask is,
Are we prepared?

Preparing
for the
IPO
journey

Keeping
options
open

Timing
the
market
right

Building
right
management
& advisory
teams

The IPO value journey with EY

The IPO value journey for an organization
involves putting a sound IPO plan in place,
which will typically include the pre-deal,
execution and post-deal business phases.

Establishing
corporate
structure &
governance

Managing
investor
relations &
communications

We can provide the following services

relevant to the execution phase:

IPO pre-deal
Preparing for an IPO is an intense and
arduous process. EY brings in the right
resources to manage the program and
assist you in your preparation for the
IPO event. We also ensure that strong
operational execution does not get diluted,
as your executive team needs to devote
significant time and energy while preparing
for an IPO.

Building
business &
nancial
processes

D
evelop a clear and compelling
business strategy.
Build robust executive teams.
Early attention to accounting
implications.

GAAP transition and implementation.

Tax re-structuring.

S
trengthen corporate governance.

Strengthen process and internal

controls.
Develop performance based culture.
Improve transparency and foster
investor confidence.

IPO execution
It is important to recognize that the IPO
event is not an end but the beginning of
a life-changing process for your
organization that will continue long after
the actual event.
EY can help you in the process of
organizational strengthening. This, in turn,
would help you tackle the pressures and
nuances of being a public company.

IPO post-deal
The IPO post-deal phase revolves around
executing the business plan to increase
revenues and earnings in line with, or faster
than, expectations. Businesses must stay
focused on completing the transformation.
In this phase, we continuously assist our
clients in remaining focused on delivering
on revenue and earnings targets and
improving operational efficiency.

Delivering
an effective
road show

Attracting
the right
investors
and
analysts

Delivering
on your
promise

Review/
re-create

Why choose EY?

EY has a strong history
of assisting companies in
delivering successful IPOs.
The firm is aware of the
essentials of what it takes to
succeed as a public company.
You can count on us to draw
upon our global network,
market leadership, industry
knowledge and insight to
guide you before, during and
beyond the IPO process.
Our IPO specialists help
businesses like yours to
evaluate the pros and cons
of an IPO. We demystify
the process, examine the
alternatives and help you
prepare for public pressures.
Our market-based insights can
help your business achieve its
potential.

Begin the IPO readiness process

early enough, so that your pre-listed
company acts and operates as a public
company at least one year before
the IPO.
Commit substantial resources to
the IPO process and build a quality
management team, strong financial
and business infrastructure, corporate
governance and an appropriate
investor relations strategy that will
attract the right investors.
Do not underestimate the amount of
time that the IPO journey will take, and
the level of scrutiny and accountability
faced by a public company.

Make sure you

know how to
prepare for this
transformational
transaction and
manage your
newly public
company

Evaluate capital-raising options

Consider adopting a multi-track approach
and expanding the number of capitalraising strategies, including foreign listing,
strategic sale to a trade or financial buyer,
joint venture or a private placement.
Pursue pre-IPO transactions to achieve the
maximum value, especially in the case of
debt financing and refinancing, corporate
reorganization and private placements of
business alliances.

Address investors current

concerns

Recognize the need for enhanced

corporate governance in terms of
recruiting qualified non-executive
board members, improving internal
controls and forming a qualified
audit committee.

Outperform competitors on key

benchmarks

Maintain strong financial projections

such as debt to equity ratios, EPS
growth, sales growth, RoE, profitability
and EBITDA growth; investors base
most of their IPO decisions on
financial factors.
Build a strong corporate governance
structure; investors base their IPO
investment decisions on non-financial
factors, especially the quality of
management, corporate strategy
and execution, brand strength
and operational effectiveness, and
corporate governance.
Articulate a compelling equity story,
backed by a strong track record of
growth that sets you apart from
your peers, while maximizing value
for owners.

Fine-tune your internal business

operations with focus on working
capital management, regulatory
risk and rationalizing the
business structure.
Deal with accounting challenges
pertaining to asset valuation
impairment, consolidated subsidiary
financial statement issues and revenue
recognition.

The key success factors for an IPO include:

Attractive pricing

90.7%

Compelling equity story

64.6%
56.9%

Condence in management
Right timing

35.4%

Readiness to provide transparency

and good corporate governance

28.9%

Size of the transaction

8.5%

Reputation of the banking

syndicate

6.5%
2.0%

Listing venue selection

0%

20%

40%

60%

80%

100%

% of respondents
* According to our 2013 Global IPO institutional investor survey and our decades of IPO experience

Ernst & Young LLP

EY invests in IPO
guidance to help
you succeed

Your contacts

About EY
EY is a global leader in assurance, tax, transaction and advisory
services. The insights and quality services we deliver help build trust
and confidence in the capital markets and in economies the world
over. We develop outstanding leaders who team to deliver on our
promises to all of our stakeholders. In so doing, we play a critical role
in building a better working world for our people, for our clients and
for our communities.

IPO roadshows
EYs IPO roadshows are aimed at giving
attendees a complete run through of what
is involved in taking a company public.
The IPO roadshow offers an unparalleled
opportunity to test the waters without
risking your business.

The IPO roadshow enables

delegates to:

Explore alternative ways to raise

finance and the most suitable one
for you considering your strategic
intentions, your personal and business
aspirations, and market benefits.

Learn from other peoples experiences

of taking their companies to market.
Meet people in a similar position in a
confidential environment.

A
ccess to EYs global IPO network.
ebcasts, videos, current trends and
w
IPO journey preparedness.

L
ive chat network.

The EY guide to going public

Ernst & Young LLP is one of the Indian client serving member firms of
EYGM Limited. For more information about our organization, please visit www.ey.com/in.
Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability
Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor,
Block C, Kolkata - 700016
2013 Ernst & Young LLP. Published in India.
All Rights Reserved.
ED None
This publication contains information in summary form and is therefore intended for
general guidance only. It is not intended to be a substitute
for detailed research or the exercise of professional judgment. Neither Ernst & Young
LLP nor any other member of the global Ernst & Young organization can accept any
responsibility for loss occasioned to any person acting or refraining from action as a result
of any material in this publication. On any specific matter, reference should be made to the
appropriate advisor.

I dentify your companys strengths

and weaknesses and learn how to
close the gaps.
earn how to manage the process,
L
as well as other players and your
organization during this time of
transformation.

Scan this QR Code for more or visit www.ey.com/in

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Ahmedabad
2nd floor, Shivalik Ishaan
Near C.N. Vidhyalaya
Ambawadi
Ahmedabad - 380 015
Tel: + 91 79 6608 3800
Fax: + 91 79 6608 3900

EYs global IPO center puts our knowledge

in your hands. The center is a virtual hub of
information that includes:

R Balachander
Area IPO leader - India
+91 124 671 4080
balachander.r@in.ey.com

nderstand the measures that

U
matter and what it takes to win in
capital markets.

IPO readiness sessions last two to

four hours and are best held in an
environment without distraction at
your company or at an EY office.
Contact our IPO Leader to set up a
session.

V
irtual IPO resource hub.
I nteractive tool market and IPO data
analysis.

An IPO readiness session is designed

to guide your company to make a
strong debut in capital markets.
It fosters strategic thinking and
discussion around business objectives,
capital-raising strategies and
organizational change required to
execute and sustain a successful IPO
and alternative transactions.
Hot topic:

Understand why companies go to

the market, their objectives and the
results.

Global IPO center of excellence

Dr. Martin Steinbach

Area IPO leader - Europe,
Middle East, India, Africa
+ 49 6196 996 11574
martin.steinbach@de.ey.com

Conduct an IPO readiness

session

Funding for growth

EY refers to the global organization, and may refer to one or more,

of the member firms of Ernst & Young Global Limited, each of
which is a separate legal entity. Ernst & Young Global Limited, a UK
company limited by guarantee, does not provide services to clients.
For more information about our organization, please visit ey.com.

Where to list and to raise capital.

Webcasts featuring IPO success
stories.
Perspectives on the challenges and
risks of going public now and next year.
Insight into the IPO journey, spanning
from start to finish, to help you realize
life as a public company.

Access the Center at www.ey.com/ipocenter

EY offices

Business operations and capital

flows are becoming increasingly
globalized in the backdrop of new
centers of economic strength and
innovation emerging worldwide.
Potential market-leading companies
are springing up in places such as
China, India and Eastern Europe, in
addition to the mature markets of the
US and Europe. While the majority of
companies ultimately choose to list
on their domestic stock exchanges,
more business leaders are now
considering the pros and cons of
accessing public capital in a foreign
market. In line with this, EY has
developed Stock Exchange guidance,
which is designed to be an objective,
fact-based comparative tool for
business leaders weighing exchange
alternatives. It includes general
listing standards and criteria for the
most important stock exchanges
worldwide.

EY | Assurance | Tax | Transactions | Advisory

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