Better Business Behaviour
The IPO market is effectively closed for new listings as the economy continues to grapple with rising inflation, geopolitical tensions and market volatility. Whilst the new Prime Minister moulds his cabinet and charts a new course for the country, attention has turned to 2023 and a new year’s potential.
If you are planning an IPO sometime in 2023, act like a publicly listed company today. Embedding good governance systems and controls in advance will cause less of a shock when corporate governance admission requirements are mandatory. Preparations should take place at least six to twelve months in advance of an IPO to ensure adherence to the UK Corporate Governance Code.
Businesses will continue to be subject to increased regulatory reporting, disclosure obligations, and financial reporting requirements after going public. Ensuring your house is in order in advance of a float will set you in good stead ahead of the first reporting season.
Good governance isn’t just about compliance.
A 2020 report led by the UK’s Financial Reporting Council found that corporate governance reporting failed to live up to stakeholder expectations, with some businesses’ corporate governance reporting driven by compliance rather than focused on evidence-based outcomes.
From the moment you list, your business will be under close scrutiny from the market, investors, and the media. Increased profile could be a key benefit of an IPO, but this will also lead to increased interest in issues and poor performance as well as good news stories.
Engaging communications support at the start of the IPO process is essential to put in place good communications practices throughout the organisation in advance of stepping into the public spotlight. You don’t know what you don’t know and a missed issue or forgotten stakeholder can make or break a float. Better to prepare than repair.
There are reports of a strong pipeline of businesses waiting for the right conditions to float. If you are among them, act like a listed business now so you are ready for when the IPO market ‘re-opens’.