Today, when companies are going public on the international stock exchanges and engaging big foreign investment, in the time of mergers and acquisitions, the problem of management of a company’s worth takes the first place. A number of enterprises are bought for the subsequent resale, and shareholders pose the main task to management: the appreciation of an enterprise. An owner considers an acquisition of an enterprise as medium or long-term investment.

Specialists of International Standard Franchise offer different events, the main purpose of which is the appreciation of a company and which could be applied at companies expecting large-scale investments and planning to offer (or having offered) their securities on a stock exchange.

There are plenty different techniques of calculation of company’s value or cost management – they all are combined in the principle of VBM-management (Value Based Management). It is well known that the clearance value of an enterprise may be rather different (and, as a rule, it is) from book value of the enterprise. Calculation of a company’s value according to IFRS standards clears the situation.

A company’s worth is highly affected by company’s intangible assets, such as: knowledge and experience of the staff, holding of trade names, geographical position, partner relations with suppliers and buyers, technological know-how; thus, the company’s worth is combined of its book value and goodwill.

Our task is to build the system of worth increase for book value and goodwill. It is not possible to manage processes that can’t be measured. The proposed model of management is based on financial and non-financial factors.

This model will help an executive:

• To monitor changes in a company’s value interactively;
  
• To see what factors influence changes in the company’s value and to monitor the size of their influence;
  
• To build a system of prompt decisions basing on the strategic goal to appreciate the enterprise;
  
• To build a system of interconnected factors affecting the goal’s achievement;
• To determine weak points (decrease in rates of factors change and other crucial trends) by using the «management panel» and react to them in proper time;
• To get an instrument of strategic management;
  
• To have a showing which is generally accepted and clear for investors, and which characterizes the company’s operational efficiency.

An important stage in the development of any large company is going public. Depending on how competently the preparatory work is conducted, it might be either “a warm welcome” or “a cold indifference” to your securities at stock markets.

IPO is first and subsequent offers (also called Seasoned Equity Offerings (SEO) or Follow-on Offerings) of issued securities sale of a certain issuer, addressed to general public and conducted during the process of securities issue by means of a public offering or during the process of public circulation of securities on stock markets and other trade organizations on the securities market.

Goals of a company’s going public:

1. New stage in a company’s development that shows your status to you partners and clients.
   
2. Additional investments in the business.
   
3. New mechanism of managing the business’ reputation.
   

Success in this direction depends completely on abilities to value the worth correctly, to file documents and to get through all normative procedures. Without understanding processes that take place on stock exchanges, it makes no sense to start company’s activities in the sector of securities. All investment should be well-taken.In this case they are well-taken due to high proficiency of experts and consultants of International Standard Franchise. The Company provides services in the following stages.

Preliminary stage

At this stage, our experts analyze financial and economic state of an issuing company, its organizational structure and asset profile, an informational (and financial) transparency, practice of corporate management, and other aspects of its activity. According to the results of this analysis, experts try to eliminate found infirmities and shortages, which may prevent the issuing company from realizing IPO successfully. Such actions usually are done before the final decision about going public on a stock exchange.

Preliminary stage actions:

1. Pre-investment inspection (Due Diligence) as the stage of preparation of an issuing company for IPO; procedures include: legal and financial review of the company and an audit report for the most recent three years (Long Form Report).
   
2. Finding the directions of operations and working out decisions.
   
3. Corporate management.
   
4. Risk management.
   
5. Factual financial results.
   
6. Tax structure.
   
7. Preparation of financial reporting and tools of internal control.
   
8. Audit of the financial reports.
   
9. Audit of the management and corporate reports.
   
10. Audit of development strategy of an enterprise.
    
11. Business plans and projections.
    
12. Improving the system of internal control.
    
13. Improving indexes of financial activity (reorganization of business processes, motivation).
    
14. Risk management.
    
15. Restructuring and reorganization before entering the IPO (creating foreign holding companies and shareholding structure for shareholders).
    
16. Deals that raise the useful effect for a company.
    
17. Evaluative services within strategic restructuring.
    
18. Determination of a tax position that meets requirements of international standards.
    

Preparatory stage

If according to results of a preliminary stage, the perspective of IPO is evaluated positively, the process of IPO will come to the new stage called preparatory, during which the following steps are taken:

1. Selection of team participants for IPO (choosing an exchange, partners (consultants, brokers, underwriters)), with whom a plan of actions and configurations of IPO will be finally coordinated.
   
2. Formal decisions are taken by organs of the issuing company, formal procedures are kept and formal documents are worked out (prospectus of securities).
   
3. Advertising campaign is started.