| Background |
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| If you are considering a flotation of your company on the stock market you will have to consider all of the following questions. If you would like to discuss the possibility of floating your business call 01928 756 880 |
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| The Board of Directors |
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1.1 Do the directors have the necessary skills and experience? |
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| 1.2 Continuity of management? |
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1.3 Do they act as a team? |
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1.4 Is the Board balanced? |
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1.5 Has the integrity of any director been questioned in the past? |
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1.5 Are there sufficient non-executives? |
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1.6 Is the age profile suitable? |
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1.7 Is there any planned successors, which also covers any damage should the company lose any directors? |
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| Middle Management |
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2.1 Is there sufficient strength in depth to manage the growth? |
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2.2 Are there plans to secure the middle managers through to flotation? |
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| Management Systems |
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3.1 Is there a formal system of internal reporting and control? |
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3.2 Do management have access to reliable and timely key performance indicators? |
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3.3 Is the actual management information available on a timely basis, so there is proper monitoring in the final stages of flotation? |
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3.4 Is budgeting reliable? |
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3.5 Are there deficiencies in the financial systems? |
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3.6 Are all the audit reports unqualified? |
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| Financial Record |
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4.1 Three year record |
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4.2 Any changes in group structure/accounting policies? |
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| Relationships with Third Parties |
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5.1 Are agreements with major customers, suppliers and contractors on a formal basis? |
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5.2 Are there contingency plans? |
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5.3 Are there any conflicting arrangements with others such as:
- not being able to sell products or services into markets?
- is there a related company which trades? |
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| 5.4 Is the company dependant to a large extent on any particular supplier/customer? |
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| Structural Matters |
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6.1 Are there any minority interests? |
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| 6.2 Are there any joint ventures? |
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| Profitabliity and Planned Growth |
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7.1 Is there a track record of sustained growth? |
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7.2 Is the growth capable of being sustained? |
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| Taxation |
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8.1 Are corporation tax affairs up to date and all issues resolved? |
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8.2 Have other areas of tax, particularly PAYE and VAT, been subject to review? |
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| Legal Matters |
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9.1 Are there any regulatory requirements specific to the company or its industry? |
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9.2 Are there proper insurance arrangements in place? |
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9.3 Are quality control procedures adequate? |
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9.4 Environmental matters? |
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| 9.5 Any outstanding legal actions against the company? |
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| Strategic Issues |
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10.1 If flotation is to fund geographic or product expansion, has that expansion started before flotation? |
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10.2 If growth post flotation is dependent on acquisition, have acquisitions been done before flotation? |
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