05: Preliminary considerations

Before any stock market listing, your company needs to ensure it is in a strong profit position and to get an independent valuation. Depending on how much money you need to raise, you must decide on what proportion of the business to sell and whether other options for raising finance are more appropriate.

It is important to ensure that the company meets the regulatory and accounting standards required of the listing and that it has the correct legal structure – sole traders and partnerships cannot float.

You must also allow sufficient time. A typical flotation can take at least three months to complete, and it could take as long as a year for your company to become ready for the flotation in the first place. If it is necessary to wait for market conditions to become favourable, the process could take even longer.