MODEL OVERVIEW
 
An Initial Public Offering (IPO) marks the transition of a private company into a publicly traded entity by offering its shares to the public for the first time. This process provides access to capital for growth, debt repayment, or strategic investments, while also enabling existing shareholders to realize returns on their equity.
 
Our comprehensive IPO financial model is designed to project and analyze the financial outcomes of an IPO. It equips users to:
Perform Valuations: Utilise discounted cash flow (DCF) and comparative analysis methods to determine the company’s intrinsic value and the ideal IPO offer price.
Model IPO Proceeds: Calculate gross and net IPO proceeds, incorporating overallocation (Greenshoe) adjustments, primary and secondary share allocations as well as IPO fees.
Determine Ownership Changes: Assess the impact of the IPO on ownership structures and issued share capital.
Evaluate Post-IPO Valuations: Analyse post-IPO valuations after investing the proceeds, providing insights into returns for both existing and new shareholders.
Compare pre and post IPO Financial Metrics: Contrast key financials and ratios pre- and post-IPO to gain a clearer understanding of the impact of the IPO.
Run Scenario Analyses: Explore various scenarios for key IPO variables to assess potential impacts and prepare for uncertainties.
 
This model adheres to best practices in financial modeling, incorporating clear instructions, checks, and input validations to ensure accuracy and ease of use.
 
 
KEY OUTPUTS
Key IPO outputs including offer price, valuation, gross and net IPO proceeds, issued share capital and postIPO ownership and returns
Valuations pre and post IPO to determine ideal offer price, impact of IPO and returns for new and existing shareholders
Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) across 5 years presented on a yearly basis for the company pre and post IPO;
Ratio Analysis based on projected financial statements
Charts comparing pre and post IPO key financial metrics and ratios
 
 
KEY INPUTS
 
Setup Inputs:
Names of transaction and company;
Currency;
IPO Date;
Companies for comparative analysis;
Naming for IPO scenarios;
 
Assumptions:
Latest P&L and balance sheet actuals;
Forecast income statement and balance sheet assumptions with and without IPO proceeds
Valuation inputs including key financials for comparative companies, discount rates and terminal growth rates;
IPO assumptions including offer price discounts, primary and secondary share, overallocation adjustments and expected IPO fees under 3 scenarios.
Proforma opening balance sheet adjustments.
 
 
MODEL STRUCTURE
 
The model comprises of 8 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs which include ‘i_Setup’ for model and transaction general assumptions and ‘i_Pre_IPO’ for specific projection assumptions relating to the company pre-IPO and ‘i_Post_IPO’ for the detailed IPO related assumptions. The calculation tabs uses the user-defined inputs to calculate and produce the projection outputs which are presented in the calculation tabs and ‘o_Dashboard’ tab.
 
KEY FEATURES
 
The model follows good practice financial modelling guidelines and includes instructions, checks and input validations to help ensure input fields are populated accurately;
The model enables the user to prepare projections across 5 years and valuations for the business on a pre and post-IPO basis;
The model includes the possibility to model 3 scenarios for key IPO assumptions including offer discount rates, IPO fees and expected changes in projections post IPO.
The model is not password protected and can be modified as required following download;
Apart from projecting revenue and costs the model includes the possibility to model receivables and payables, inventory, fixed assets, borrowings, dividends and corporate tax;
Business name, currency, timeline and IPO date are fully customisable;
The model included valuations on both discounted cash flow basis (DCF) and comparative analysis basis with user-define weights for each approach;
The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors. 
 
 
SUPPORT / MODIFICATIONS
 
We are keen to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind and include instructions, line-item explanations, checks and input validations to ensure they are as  user-friendly and easy to use as possible without requiring extensive knowledge of Microsoft Excel, finance or accounting. If any questions do arise, we are more than happy to assist. We are also happy to support with any be-spoke modifications you may require to the models to better suit your business needs. To get in touch, please send us a message through the website or contact us on hello@useprojectify.com
 
We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.