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How to make an initial public offering
The main causes of any company to go public (sale of their shares to the people) is to raise money or, as often happens, the attraction of big money. In addition, companies tend to become public, because it opens up some opportunities in front of them in financial matters:

• Because of the high-profile public companies can attract more investors, when they issue debt securities – bonds.
• If the company is in demand in the market, it can always issue additional shares, thereby attracting additional funds.
• It becomes easier to carry out mergers and acquisitions, as well as for the calculation may be issued additional shares.

Also, be on the list of one of the world's major stock markets has always been considered very prestigious. Therefore, not every private company can lay claim to it. In order to be able to issue their shares in the stock market, the company must adhere to certain standards and have a stable financial condition.

Unfortunately, the Internet has made their changes to the rules.

In the late 1990s on the American markets, companies that went public, no longer had to have a stable financial foundation and history. Instead, the primary placement of committed small businesses formed just wanting to get a push to expand. In principle, nothing obscene in the desire to develop its business there. But the fact is that these companies for their short history, made no profit or even did not plan to become profitable in the near future. They were based on venture capital, and their main hope was for the general wave of popularity of technology companies to sell their shares, fill their pockets and then come what may. So then what happened. Blinded by the general excitement investors bought all that at that time appeared on the market, and when in 2000 the bubble burst, the start of mass loss of money.

You should always remember that the initial public offering – is the sale of shares, and it is no different from selling Chinese goods distributors in the street. If you can convince people to buy their shares, you will earn a lot of money, but that does not mean that with your company will also earn and your investors. So, if you invest your money in a company and want to later she brought you a profit, be sure that this company can make money for their investors and that it proved that their history.

In order to take part in the initial public offering, or, in other words, the purchase company stock at a price issue, you should know as they enter the market.

There are two main ways of entering the market.

The first way – independent when the company without any intermediaries makes sure that its shares have been bought by investors.

The second method, which is more familiar and popular – is when the process involved in the so-called intermediary between the company and investors. Typically, such a mediator is an investment bank.

This process is called a guaranteed process of placement on the market (Underwriting). In addition to stocks, with the help of this process can also be placed debt securities – bonds.

How does this process occur?

Companies and investment banks meet and discuss issues of trade. Such issues typically include the following: how much money the company plans to attract, what securities will be issued, etc...

As we mentioned earlier, this process is guaranteed for the company. This means that the investment bank negotiates with the company to purchase all remaining shares of the company or on their own and then sells them to other investors.

In addition, there are the so-called non-guaranteed contracts between investment banks and companies, the bank promises to do everything possible to sell shares or debentures of the company to investors, but at the same time does not promise a guaranteed sale.

Some banks do not take full responsibility for the dissemination of securities of the company and formed a syndicate in which the process of connecting other financial institutions.

Once waived all questions about the transaction provided for the approval of the State Commission. Unknown at this stage there are only price and date of issue of shares by the bank and the company set after exploring the market conditions, investor interest, etc... Once the time comes to market, the shares sold to investors.

As you can see, the ordinary investor to be in the front row is very difficult, although the chances are there is, if you are a customer of the bank, which is involved in the process of placement.

It should be noted that there was little benefit in buying shares in the company's initial public offering may not be. Yes, of course, it was very profitable in the late 1990s, but times have changed, and now the shares of new companies might as well drop in price and the initial public offering. Therefore, this approach is quite speculative. Once again, we advise you to invest in companies that have already proven they know how to make money.
Source of information request to gather information on business valuation
I. General corporate data and descriptive data:
1. Charter of the enterprise and all subsequent changes.
2. Proceedings of the last annual meeting of shareholders.
3. Prospectus (the last), the notice of the state registration of securities.
4. Copies of assessment reports, if the assessed market value of the property complex, or assets of the enterprise (the results of the last revaluation in order to international financial reporting, etc., if carried out by independent experts), offers to purchase the property (including shares) of the enterprise.
5. Copies of documents of title to land.

II. Marketing Research:
1. Research or analytical reports on the industry.
2. Brochure (brochure) Enterprise (description, products, suppliers, customers).
3. Production of main products (services) for the past three years every quarter with prices for products (works, services) and the main consumers of these products. Design capacity for each product.
4. A list of several companies of similar profile and their characteristics (including, if possible, indicate the rate of market capitalization).
5. Description of mergers (takeovers), who were involved in the company of a similar profile.

III. Financial documents:
1. The accounting policies and orders, it has approved.
2. Annual balance sheets with a mark of tax for all applications: a form of number 2, 3, 4, 5 and explanatory notes to the balance sheet (for the last 3 years before the valuation date). Balance sheet and profit and loss account as at the valuation date. Explanation of lines in the profit and loss statement, "Other fixed income / expenses", "Other operating income / expenses" on the date of grant of financial statements.
3. Transcript cost of goods (works, services) (the last 3 years before the date of assessment), broken down into fixed and variable costs, in the context of individual cost items.
4. Explanation of intangible assets.
5. Inventory of fixed assets with the specifications and parameters. Completed forms on those of structural elements of buildings and description of land (fill in tabular form).
6. Decoding a string of balance, "Uncompleted construction" (fill in the form of buildings and structures of pending).
7. Decoding the balance line "Investments in tangible assets" (see table).
8. Decoding a string of balance, "Long-term investments" (see table).
9. Explanation of reserves (see table).
10. Explanation of accounts receivable (see table).
11. Decoding the balance line "Targeted funding and income" (see table).
12. Detailed information about all the available credit (debt), including a creditor (lender), maturity, terms, current interest rates and other contractual obligations. Copies of loan agreements (see table).
13. Detailed information on fines, fee due to the payment of the organization, but are not reflected in the balance.
14. The business plan of the organization. A detailed cash flow forecast for the next 3 years. Plan investments and the estimated cost of repairs.
15. List of leased assets with an indication of the lease and the monthly rent (see table).
16. Production costs (form number 5-s state statistical observation, "Information about the costs of production and sale of products (works, services)."
17. Information on taxes paid by the company (table).
18. Annual Report Company's Quarterly Report of the Issuer.
19. Information about the legal and actual emissions to the environment emissions. If an excess of actual emissions standard values ??to indicate the cost of work to bring the emission in accordance with regulations.
20. Information on the cost of sales in the last reporting period.
21. Explanation of off-balance sheet accounts on 07/01/2006.
22. Information on the accrued dividends on the shares of each type and form of payment for the last 3 years, planned for the current year's dividend.

IV. Information about shareholders:
1. Structure share capital as of 7/1/2006 showing the amount of packages in both monetary and percentage terms.
2. Help from the register of transactions with the shares held company in the last six months from the date of assessment.
3. Information about the proposals for the purchase of shares.
This list is not exhaustive information, and in the course of work may need more detailed information.
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