Many companies – especially small ones and mid-caps – suffer from insufficient equity capital. The equity capital of a company is very important because it increases entrepreneurial independence and flexibility. Especially young companies largely depend on their shareholders’ financial resources. If these are limited, the company’s financing options are limited as well, eventually maybe even leading to liquidity problems. If successful companies meet their financial limits, going public may be a way to get access to new capital. The proceeds generated from the issue of shares when going public can be used to finance direct further growth and concrete investments.
Going public is also a good way for shareholders to exit from their participation, partially or fully, without jeopardizing the company. The option of divestment is important especially for venture capital companies and private equity investors who wish to part with their successful participations by going public in order to realize capital gains. But going public also has numerous corporate, capital market, and tax-related implications. Due to the high demands made by the capital market, going public must be carefully prepared in order to lead to success. The success of a public listing cannot only be measured by the bond proceeds that it generates. Not least because of the increased media attention it will also result in an improved standing with clients and suppliers. We support companies that wish to go public and advise banks and financial services providers during the preparation, structuring, and implementation of a stockmarket listing.