Copyright1999GoingPublic–TheValueCreatingIPO:NE-ToolkitCONFIDENTIAL2990524BE_091615_001v3GoingPublic–TheValueCreatingIPO:NE-ToolkitCopyright19993990524BE_091615_001v3SUMMARY•MethodtosubstantiallyincreasemarketvaluethroughconductinganoptimalIPOprogram•JürgenKluge–GE/DU•JürgenMeffert–GE/DU•ElmarKades–GE/CG•ArunNagwaney–GE/MU•SebastianLeser–GE/MUContentsummaryContactpersons4990524BE_091615_001v3Source:McKinsey•PDdocument.SummaryofourexperiencefromanIPO(whichwasultimatelycalledoff)CONTENTSOFTHENE-TOOLKIT•SanitizedLOPwithpresentationcharts.DocumentswereusedinaNEsituationinGermany(GermanandEnglish)•Appendix–Sanitizedworkshopmaterialfor"IntroductiontoIPOphase"(German)•Presentationforhalf-dayworkshop•Valuationmodeltoexperience"live"stockmarketreactionstovariousmanagementdecisions–InternalandexternalliteraturelistGoingpublic–theValueCreatingIPO:NE-ToolkitwillbeavailableasaCDorbinderfromSylviaMarx(GE/MU)5990524BE_091615_001v3ObjectivesofMcKinseyinvolvement•Achievehigherinitialmarketcapitalization•Sustainaboveaveragelong-termshareperformanceSource:McKinseyMcKINSEYIMPACTININITIALPUBLICOFFERING(IPO)SITUATIONS•Introduceanalyst/investorperspective.Thetopmanagementrealizesthecorrelationoftheiractionsandthesharepriceataveryearlystageinasafe(i.e.,internal)environment•Preparevalue-orientedequitystory.Thegrowthstrategyispackagedinpre-determinedformatsforthemanagementtobeabletoconvincepotentialinvestors:newissuedossier,analyst-and-roadshowpresentation,andinvestorprospectus•ChannelIPOmomentumtoimplementstrategy.Theoperatingandstrategicimprovementscommunicatedtoinvestorsarebeingimplemented•Provideindependentcounsel.Anindependentopinionsupportstopmanagementasthegoingpublicprocessinvolvesnumerousinternal(e.g.,currentowners,executiveboard,supervisoryboard)andexternal(e.g.,investmentbanks,accounts,lawyers,IPOconsultants,communicationagencies)players,whichmighthavebiasedagendas6990524BE_091615_001v3DO'SANDDON'TSINSTRATEGYDEVELOPMENTANDPOSSIBLEIPOSource:McKinseyDo's•Dousestrategydevelopmenttoorientcompanytonew,high-growthbusinesses•Dodevelopstrategyinclosecooperationwithheadofcompanyandasmallgroupof"highpotentials"•Docontinuallycommunicategrowthstrategyandspecific,demonstrablesuccessesinordertobringaboutbelievablestrategicrepositioning•Doconsiderstrong(butusuallyshort-term)self-interestsofcurrentownersandconsortiumbanks•DousetheIPOtoimplementthedevelopedstrategyimmediatelyDon'ts•Don’tberigidabouttheplanneddateoftheIPO.Markettrends/situationsmaybemuchmoreimportantthanagivendate,especiallyfortraditionalcompanies•Don'tcommunicatesuccessstoriesallatonce,butratherlevelbylevelandstepbystep•Don’tmaketheIPOtheparamountgoal.Intheeventofapostponement,thedisappointmentoftheentirestaffcanbeveryhigh•Don'tcontinuallycritiqueallpartiesinvolvedconcerningtheirvalue-addedduringtheIPOphase7990524BE_091615_001v3CONTENTS•Restructuring&growthandstrategydevelopment•IPOandpost-IPO-phase•Gettingthetimingright•Projecttimeplan,McKinseyvalue8990524BE_091615_001v3IPOPROCESSSource:McKinseyVconcept•Optimizedcoststructure•"Earntherighttogrow"DMTimeCompanyvalueIndex•Consistentimplementationofstrategy•MoveintonewbusinessareasCoreelementsGettingthetimingrightRestructu-ringandgrowthStrategydevelop-mentPost-IPOIPOphasePreparationExecutionEndproductCompanyvaluationDuration3horizons123•Co...
