Listing your company on the Stock Market for the first time is called an Initial Public Offering or IPO – often also referred to as ‘Floating the company’ or simply a ‘flotation’. It means that anyone can purchase your shares and trade them through the stock market. It can raise valuable cash and works as an ideal exit strategy to settle funding arrangements. If you are the sole shareholder or there are few shareholders, floating can be an ideal way to start to plan your retirement or exit from the business with a strategic plan.
There are of course advantages and disadvantages to floating your company on the market. Quins finance can offer you the right advice and ensure that you appoint the right people to make your IPO successful, regardless of where your company is based. Bespoke IPO funding solutions are also available.
Restructure your company’s finances. Lower debt repayment. Become a leaner, meaner business machine; Faster, Stronger and more competitive.
Restructuring does not always mean bad news, job losses and ‘pulling in the belt’. To the contrary, it more often means becoming leaner, faster and stronger in the preparation to become ‘attractive’ to outside investors and become more profitable. Moreover, it means becoming more efficient.
A simple restructure can also be seen as a financial spring-clean, ridding the inefficiency within the business. As a business grows and acquires assets and increases its ground in the market place, it is essential to review the business structure. For faster growing businesses and businesses going through rough times and constricting its operations, a regular view by its executives at mild-restructure is essential to maintain efficiency and profitability – making the maximum of the business turnover, profits and assets.
Restructuring can therefore take many different forms. It can address its existing borrowings in an attempt to lower them or to offset them, or to refinance to obtain longer and more competitive repayment terms. It can also address the management of collaterals and restructuring of assets to increase the companies wealth, health and gearing ratios to become ‘fitter’ and attract investment.
Restructuring on a larger, more intense scale, may result in the offsetting or avoidance of tax obligations and the offsetting of short-term debt into longer term debt obligations.
In preparation for a major investment, loan application or IPO, a view at restructure is important.
To effectively restructure, it is important to have a complete understanding of the benefits of international jurisdictions, tax efficiency, business capital options and many other complex financial issues.
Once we are invited to learn more about your business, we can provide comprehensive advice and offer numerous financial solutions such as;
We welcome enquiries from all types and sizes of business and we would be pleased to hear from you to see how we can help with your corporate restructure.
The height of a CEO’s career is when he takes his company to IPO (Initial Public Offering) and floats his company on the stock exchange. It is a high personal achievement to know that his hard work and energy has paid off and that other members of the investment fraternity can benefit in the purchase of his company’s’ shares.
Apart from a convenient way to raise money, an IPO can often be the culmination of many years of hard work. It may have been the objective of the company or project to “go public” from the outset, or it may be a current and more recent opportunity. It may also represent the start of the owners business exit strategy, heading toward retirement. Effectively, going public means that the business enters a new level of operations. It undoubtedly introduces new regulation to the company whereby executives may be forced to keep an eye on accounting ratios more often than perhaps they were used to. It also means that the business must be prepared properly in the run-up to an IPO.
Regardless of the size of the company, or the time it has been trading, it will be the case that a company needs to ‘spring-clean’ financially and tidy up any financial ‘loose ends’, often over-looked through familiarity by the management. Bringing in new and unknown investors means that all aspects of the business must be in good order and may mean a serious look at restructure before going toward an IPO to maximise the profitability of the sale.
“Sell off parts of the company; retain the cash-cows.”
In many circumstances, a company may be broken into separate companies or a group structure may be separated to allow for some companies in the group to be sold by IPO and where the private owners may decide to retain full ownership of other aspects of the business. This calls for professional planning and expert knowledge.
It is also essential that the existing owners of the business have planned for their own personal financial issues for when they receive money for their existing shares. Tax issues, tax residencies and retirement issues often come into the equation.
Working closely with our associate partner bankers in Switzerland with associates in London, Singapore and New York, we can advise on all aspects of taking your business to IPO, or indeed planning the exit strategies of your business from the very outset.
Whether your business is ready for IPO or if you simply want to prepare its for sale; we can help you go public when you want to. Get in touch today.
Selling a business can be a stressful process, not to mention a heart-ache. When business owners decide to sell their business, certain preparations must be made. In likening it to selling a car or motorbike – the business must look clean, run like a dream and be extremely visible. By visible we mean, it must be open to potential buyers who can see (and understand) the ‘mechanics’ and ‘workings’ of the business machine.
This will need preparation and financial fitness. It may also involve mild-restructure to prepare for the selling of the business to avoid heavy tax obligations or to maximise the profitability of the sale.
It is important prior to any notice offering your business (or company group) for sale, to ensure the efficiency of the business is first class and to ensure that its debt obligations and borrowings are correctly match-funded, promoting healthy cash-flow and profits. This may in-turn lead to many different problems. For example, it may lead to a requirement to withdraw personal guarantees for current loan commitments before the sale and to ensure that by doing so, the borrowing rates and terms do not increase, weakening the accounts. It may equally mean that some assets that are not included in the sale being retracted, requiring additional collaterals to be placed in the business to retain its gearing ratios in correct proportions.
ICS can also assist by placing experienced members to your Board, ensuring that the structure can be withheld throughout the sale process.
In real-life, there are a myriad of financial problems needing often complex solutions.
By structuring the business into a ‘holding group’ off-shore company ahead of the sale, may help its owners to retire abroad and bring their fortunes with them tax-free.
For foreign country residencies (including of course Switzerland) or for the creation of tax trusts for the children, it pays to prepare. All of these can be arranged prior to the sale of your business, allowing you to plan the use of the sale proceeds, or to invest further in other businesses from a tax-friendly jurisdiction whilst maintaining your domiciliation in your country of choice.
Very little company purchaser will acquire a business where its management and/or principals are not present after the sale. There is always a hand-over period. With good preparation, a private business sale should not cause any inconvenience to the seller, nor should selling through ill-health cause any weakness in the final purchase price of your business.
By understanding your business and working hand in hand with the business management, our expert financiers can burden the tasks of the hand-over period with the new management, allowing for business owners to relax and withdraw from the business with little or no delay.
If you are considering selling your business or company group, contact us first. We may be all you need.
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