EY's Guide to going public in Canada available now
TORONTO, Sept. 10, 2014 /CNW/ - With the US seeing one of the strongest IPO markets in the last decade — and all signs pointing to new IPOs continuing to fuel a strong pipeline over the remainder of the year — EY says the Canadian market could be on the cusp of a breakthrough, too.
"With market confidence rebounding and capital available in North America, we could see an uptick in the Canadian IPO pipeline," says Bill Demers, EY Partner and Canadian IPO Leader. "But the window of opportunity could be tight, and companies that have been considering an IPO need to make sure they're prepared to act when the time is right."
Today, the firm launched its Guide to going public in Canada — a manual that outlines key considerations for companies preparing to go public.
"A successful IPO can take a business to the next stage in its growth journey — but deciding when and how to go public isn't easy," says Demers. "Preparing for this transformational transaction and learning how to manage a newly public company isn't something that happens overnight. Being diligent throughout the IPO journey, and beyond, is critical to success."
The guide notes that companies with successful IPOs engage in three essential practices:
- Approach the IPO as a transformational process — not just a single financing event or the endgame
- Begin to act and operate as a public company at least one year before going public
- Outperform the competition on key performance measures — before, during and after the IPO
While an IPO may be a favoured approach to raising capital among many businesses, it's important to evaluate all possible transactions that could serve as stepping stones or attractive alternatives to a public listing.
"There is considerable overlap in the preparation required for an IPO," says Demers. "It can help with anything from a strategic transaction to debt refinancing. By preparing for an IPO, companies increase their strategic options and negotiating leverage while reducing execution risk — even if they never actually go through with the IPO."
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SOURCE: EY (Ernst & Young)