Floating on a stock market: your options
Appoint your advisers
Getting the right advisers is key to a successful flotation. They are the experts who will guide you through the demanding legal, regulatory, financial and marketing processes.
Bad advice, or using an adviser with a poor reputation, could seriously affect your business' reputation, ability to attract investors and float successfully. Some prefer to choose companies who have worked together previously as teams.
Advisers' professional fees, which can run into six-figure sums depending on the size of the flotation, will be the main cost in floating your business.
Most companies seeking a flotation use a corporate adviser to guide them through the process. The corporate adviser makes the application to join the stock market on behalf of the company. They are responsible for ensuring all the information in the application is complete and dealing with any requests for additional information.
If you're floating on PLUS your adviser will need to be a member of PLUS. Download a factsheet on PLUS from the PLUS website (PDF, 77K) - Opens in a new window.
Companies opting for an Alternative Investment Market (AIM) flotation require a nominated adviser who is on the London Stock Exchange register of advisers. Get information on advisers for AIM on the London Stock Exchange website - Opens in a new window.
You'll also need a stockbroker to generate interest in your business in the investment community.
Your corporate lawyer will be responsible for the due diligence process and for verifying statements in the prospectus and other documents. An accountant will be needed to review and audit the company's finances.
For large-scale floats it's worth considering the services of a financial public relations company to reach wider audiences of investors.
Subjects covered in this guide
- Introduction
- Is your business suitable for flotation?
- What is a flotation and why consider it?
- Advantages and disadvantages of flotation
- Choose the right market
- Appoint your advisers
- Prepare for a flotation
- Price your business' flotation
- The flotation process
- Here's how we prepared our business for flotation
