How we can assist in your IPO process
Ernst & Young provides services at all stages of preparing for an IPO and transforming your company into a public entity. Our professionals will act as auditors or reporting accountants, as well as provide transaction advisory services, consultations on tax and legal matters and business advice.
Our integrated approach to IPO includes four stages, each with its own goals, tasks and timeframe:
- Diagnostics
- Restructuring and reorganization
- Holding the IPO
- Current listing obligations and post-IPO growth of capitalization.
Stage 1: Diagnostics
Diagnostics includes an assessment of the following key aspects of a company's operations:
- Group structure
- Financial reporting
- Financial forecasting and budgeting
- Tax compliance and key tax risks
- Internal control system
- Corporate governance
- KPI benchmarking.
Stage 2: Restructuring and reorganization
At this stage of IPO preparation, Ernst & Young’s professionals will provide advisory and/or transaction support services in the following key areas of a company's operations:
- Pre-IPO transactions
- Business valuation
- Business plan
- Financial modeling
- Sale of non-core assets
- Consultations on tax issues
- Company restructuring/reorganization
- Management compensation programs.
Stage 3: Holding the IPO
The third stage deals with IPO regulatory requirements. At this stage, Ernst & Young will work with investment banks and other advisors to maximize the efficiency of the IPO transaction and will provide the following services:
- Audit of the financial statements
- Review of the interim financial statements
- Comfort letters
- Pro-forma financial statements
- Long-form/working capital report
- Other agreed-upon procedures with investment banks
- Tax opinion and comments on the prospectus
- Assistance in the preparation of MD&A and investment memorandum.
Stage 4: Current listing obligations and capitalization growth
The fourth stage addresses regulatory requirements set for public companies and the maximization of market value. At this stage Ernst & Young will provide the following business advisory services:
- Corporate governance
- Consolidated financial reporting
- IT systems
- Internal control over the financial reporting process and disclosures
- Internal audit and risk management systems
- Improvement of financial performance
- Effective personnel management.