There’s no denying that there’s been a noticeable decline in the IPO market this year, and there are a number of different reasons for this (economic instability being the headliner). Companies preparing for IPO are facing a litany of new and existing challenges, that could be seen as an extra hurdle on the path to growth. Just a few of these challenges include gaining a sound understanding of current regulations, assessing the expectations of your stakeholders, and knowing how best to put the appropriate governance into effect.
In today’s blog, we’ll be breaking down the importance of corporate narrative when it comes to going for an IPO, and how to go about being ready for an IPO. Despite the many challenges businesses face, IPO is still the best option for many.
The First Steps Towards a Corporate Narrative
When considering your corporate narrative, it might be tempting to pass off the responsibility to the PR department. But a strong narrative requires authenticity, which will be far harder to come by if PR is the only part of your business involved with that process. By the time you’re bringing the message to market, the PR team can certainly contribute, but corporate narrative starts with your C-suite. The executives of your company must be engaged in both assembling and embracing the narrative, and understand how it’s actually going to come into play.
Once your business is in the process of crafting a corporate narrative, it’s important to remember to branch out beyond your services or products. There is a broader context surrounding your customers and the aspirations of those customers. Consider those aspirations in relation to the aspirations of your own business. If certain opportunities genuinely excite you, they’re far more likely to excite the customer, too.
Next, ensure that the potential actions of your customers are easy to interpret. They should be far from overwhelming, but not too simple, either.
One of the final steps in crafting your corporate narrative is acknowledging people who have already been addressing one of these opportunities. Combine this into a narrative that you are confident will have meaning to the customer. It often helps to come up with a slogan that succinctly encapsulates your narrative.
Get IPO Ready
So, you’ve constructed your corporate narrative. That’s one step in the IPO journey. But what else is there to consider? If you’ve made the decision to go public, or even if you’re only in the early stages of the process, it’s going to be vital that you thoroughly assess your readiness.
This will allow for a number of things, including the following:
- Having visibility on the steps to getting IPO ready will save you costs in the long run
- You’ll be gaining insights into leading practices when it comes to IPO
- Certain decisions will be made far easier, particularly when it comes to the objectives and strategy of your company
At the end of the day, every IPO has the potential to be transformational for your company. With the right people and the right corporate narrative, you’ll be maximising transaction value.
Amidst our range of Corporate Finance Solutions, we assist businesses with their investor and shareholder communications, including IPO prospectuses. To find out more about what we offer, check out our Corporate Finance Services page.