How To Choose Intermediaries Before Going Public

The development of the consumer goods industry has reached a certain stage and has been close to and over 500 million yuan for several years. Sale After the income, the business mode has been basically stable, the enterprise will enter a stage of rapid growth, and the demand for capital will be more obvious. At this time, the first bottleneck will appear, whether business models can be replicated steadily, whether sufficient cash has been accumulated to support rapid expansion, and whether enterprises can expand their scale in time and achieve greater results. market share 。

When sales revenue exceeds 1 billion yuan, the systematic management and capital operation strategy of enterprises will become a big barrier for enterprises to continue to rush ahead. Whether smooth transformation can decide whether the enterprise can occupy the leading position and become a real industry leader.

This phenomenon is not uncommon: some well-known brands in the market have been in business for about 10 years, and have passed through the start-up period. After entering the growth period, they have not stopped or face new markets. pattern In the face of economic crisis and unexpected market events, some of the seemingly big industries will fall down.

Therefore, if the entrepreneur is determined to make the enterprise bigger and standardized, and hopes to have the opportunity to be publicly listed, it should start selecting intermediaries, standardize the operation according to the listed standards, and wait for the profit to reach the right time to start the listing work.

However, it can not be listed on the market. Instead, it should make use of the listing, improve the management structure, clarify the direction of development, and raise funds for development to complete the magnificent turn of the enterprise into the public market. The biggest advantage of listing is to get through the financing channels, and to raise capital at different relative prices at any time. Generally speaking, non-listed company can only raise funds by negotiating loans from banks or negotiating with private capital. But on the other hand, the trouble with listing is that the company must accept it. supervise The transparency of information maximization and system decision are sometimes inefficient and difficult to control for entrepreneurs.

Generally speaking, the planning and listing work is led by securities companies. The capital market is a market that redistributs resources and interests. There are strict rules, and at the same time, it requires employers to have a high degree of self-discipline and abide by the moral bottom line, so as to prevent greedy speculation from destroying the survival of the fittest mechanism in the whole market.

If a company that is able to create productive forces and wealth can get more residual capital support and create more value, it will also achieve the goal of preserving assets for the owners of surplus funds. It is a win-win situation.

If the enterprises that have no value creation ability have more capital through packaging, the capital will be wasted or dissipated, and the enterprise will not only go bankrupt eventually, but also the investors will suffer losses. But because of the complexity of the market and the asymmetry of information, it is not an easy process for most industrialists to listen to and trust them.

Therefore, it is very important to choose experienced, responsible, good reputation brokers, accountants and lawyers. There are many connections between large intermediaries, and sometimes one can find other homes. Listing is a complicated process. If someone speaks it very simply and can get huge benefits in a short time, it must be a lie.

In addition, with the development of China's capital market, market regulation is becoming more and more strict. Besides listing through the SFC's audit, the listing proves that there is no serious systemic problem in enterprises, and it will cause harm to the public shareholders. The most important thing is to rationally recognize their competitive advantages so that investors can recognize the profitability of the enterprise in the future and thus be able to buy your stock, which is the key to the success of the issue. If someone claims that he knows some important people, he will surely let the business enter the market. Listing is a natural thing to do. Even if we pass the luck, we can not cope with the pressure of achievement after listing. {page_break}

When choosing an intermediary, it should also pay attention to the industry status and market reputation of the institution itself, especially the securities firms. If the scale of the listed companies is relatively large, for example, if the income exceeds 1 billion yuan or the net profit exceeds 100 million yuan, it is necessary to seek the services of large underwriting sponsors. The most important stage of the listing of large scale enterprises is the issue of stocks. The issuance of scale requires that the securities companies have enough research capacity to maintain institutional investors, so the overall strength of the securities companies is very important.

Capital market favoured companies usually have some common characteristics, such as clear governance structure, efficient management team, balanced management structure and system operation mode. Of course, a perfect financial statement is a valid language to prove all this. Select an experienced and responsible accounting firm, prepare financial statements according to the formal accounting standards and tax laws, and improve the internal risk management and internal control system for enterprises. On the basis of knowing their true profit ability, enterprises gradually get familiar with the matching principle of funds and form the habit of making budget, which will lay a solid foundation for future development.

There is a column of "intermediaries" on the official website of the securities and Futures Commission. Enter the SFC website www.csrc.gov.cn, click on the "intermediary" box to enter, find the "business qualification", click on the entry, and then find the "securities business qualification", and then look at the theme. The last title is "other". After entering it, you can see that the thirteenth item is "engaging in Securities and futures business accounting firms directory (January 2011)". It would be better if we could further understand that a partner in the firm had audit experience in the industry.

At present, law firms can engage in capital market business from a regulatory perspective. But relatively large law firms will have more experience. You can check more information from the website of the law society.

In addition, the members of the SFA are generally recommended by the trade associations, then publicized to the public, and the candidates' practice is checked. After seeking the opinions of the relevant departments, they are decided by the China Securities Regulatory Commission's nomination committee, and the CSRC's main office will decide whether to appoint or not. Therefore, the quality of the committee is generally good and can be focused on.