Capital Markets Services
Are you considering going public and taking your company from private to public through an Initial Public Offering (IPO)?
RPGCC’s Capital Markets Services team can help!
Going public, or preparing for transactions requiring an investment circular, represents a huge time and resource commitment. A reporting accountant plays a key role and can help expedite the process.
Reach out to us
We’re here to help at the end of the day. Let’s find out what we can do to make your life that little bit smoother.
How can RPGCC’s Capital Markets Services team help?
Our Capital Markets Services team can help you navigate the complex IPO journey and provide the following reporting accountant services:
Accountant’s report on historical financial information
The Accountant’s Report is an opinion given on your company’s three-year historical financial information and is very similar to an audit opinion. This can also be referred to as the “short form report”. Most capital markets transactions require at least the last three years’ fully audited accounts under IFRS or certain other GAAPs for non-EU incorporated companies. If the last audited year-end is not recent, then recent interim financial information may need to be prepared.
Opinion on pro forma financial information
Pro forma financial information shows the hypothetical effect of the transaction on the company’s most recent balance sheet and income statement, as if the transaction had occurred at the start of the period being reported on or the balance sheet date reported. It is either required or voluntarily included in the investment circular.
We provide the required limited assurance report on the proper compilation of this financial information and whether the basis of preparation is consistent with the company’s accounting policies. Depending on the capital market, this may be either a private report or a public report published alongside the pro forma financial information in the investment circular.
Long form report
The long form report is a private due diligence report prepared by the reporting accountant for the directors of the company and the Sponsor/Nomad. The report typically covers:
- History of the business
- Commercial activities of the business
- Organisation structure and employees
- Financial reporting environment
- Historical trading results
- Assets and liabilities
- Cash flows
- Taxation
Working capital report
The investment circular contains a public statement confirming that working capital is sufficient for at least the next 12 months. To support this statement, we will review your projections for a post-transaction period of 18 months or more, from the date of the proposed listing and prepare a private report addressed to the Company and its Sponsor/Nomad.
Your management team will need to prepare an integrated monthly projections model that is capable of sensitivity analysis.
Financial position and prospects procedures (FPPP)
Most UK capital markets require applicants to have established procedures that provide a reasonable basis for the directors to make proper judgements as to the financial position and prospects (FPP) of the company and its group.
To demonstrate this, the company must prepare a detailed board memorandum that documents group FPP procedures and any changes due to take place from the point of admission to the capital market.
We can provide one or both of the following.
Due diligence report: Descriptions of the procedures that the applicant considers necessary in meeting its FPP procedures obligations; findings from our enquiries made of the directors and management; a factual commentary on strengths and weaknesses and other matters to assist the directors and the Sponsor/Nomad to assess the procedures described, together with our recommendations.
Limited assurance report: Our opinion on whether FPP procedures have been established.
Comfort letters
As part of the UK listing process, your reporting accountant will be expected to provide to the Company and its Sponsor/Nomad a series of private comfort letters.
If you would like to speak to a member of our Capital Markets Services team in London about the IPO journey contact us or telephone us on 020 7870 9050. Or you can visit our web chat in the bottom right corner which is manned during office hours and you can leave a message out of hours.
The RPGCC corporate finance team are always just a click or call away.
