Preparing yourself for an Initial Public Offering 

Investment in the Netherlands

 

Floating your company on a stock exchange? But what about preparing yourselves for an Initial Public Offering (IPO)? KPMG in the Netherlands helps management to guide the company through a complicated and often time-consuming process.

How to benefit most from an IPO?
There are many keys to a successful IPO with a number of critical phases. Before starting the whole process it is advisable to get a better understanding of the required changes to the business processes, demands on resources, time, marketing and capital structure involved before you go ahead by performing an IPO readiness scan.

 

What kind of challenges do you meet?
An IPO presents challenges of varying degrees of difficulty and may include the
following:

 

  • preparing a robust and credible business plan;
  • improving standards of corporate governance;
  • preparing a financial track record;
  • coordinating various legal, financial advisors and investment bankers;
  • performing a transition from local accounting principles to International Financial Reporting Standards (IFRS) or US generally accepted accounting principles (US GAAP);
  • preparing and verifying the prospectus;
  • agreeing on an appropriate capital structure;
  • preparing for a due diligence;
  • marketing road shows to institutions.

 

Careful planning and disciplined allocation are important
Apart from changing market conditions, which are outside a company’s control,
most delays in IPO processes can be eliminated or reduced with proper planning,
disciplined allocation of resources, coordination and execution.

 

Choose a suitable stock exchange
An important decision to make is where to list the shares. Although with current technologies the world may be your market, every stock exchange will have different advantages and disadvantages for different companies. Consider factors such as:

 

  • regulations of the various stock exchanges and local regulators;
  • political climate;
  • public awareness of the company in one area;
  • taxation;
  • planning as well as admission requirements;
  • liquidity and trading volumes;
  • listing.


A common and advantageous structure could be the establishment of a Dutch N.V. holding company with a listing of the N.V. shares elsewhere in Europe or the USA.

  

More information?

More information?

Pinny Mizrachy, Head of IPO Services Unit the Netherlands

 

+31 20 656 7721

 Pinny Mizrachy

 

    KPMG is very well-experienced and equipped to assist you
    Going public deserves the support of professionals with a thorough level of expertise and experience. KPMG is very well-experienced and equipped to assist you in this area; at the IPO Services Unit the Netherlands we have supported companies with their public listing on all major exchanges, including Amsterdam, London, New York, Warsaw, Hong Kong, Frankfurt, Paris, and other (European) markets. As a result we bring you the knowledge and experience gained on working on such listings of small and medium size companies to some of the largest and most complex listings to date.

     

    KPMG can assist you in many ways
    Our experienced IPO Services Unit professionals can assist in many of the phases of an IPO. Besides our role as auditors and reporting accountants, we can support the IPO process in the following areas:

     

    • providing multi-disciplinary teams for certain transaction needs;
    • drawing on our unrivalled local presence in all local markets potentially involved in a transaction;
    • using our industry expertise and deal expertise;
    • providing support in IFRS, US GAAP and NL GAAP conversion projects;
    • providing due diligence services to underwriters;
    • sharing our knowledge in connection with the EU Prospectus Directive and related treatment of complex accounting history issues;
    • leveraging our extensive experience in dealing with the Netherlands Authority for the Financial Markets (AFM) and other capital market and stock exchange authorities.