Using Market Research in Prospectus Work
The IPO process is an exciting time for a company and its partners. It represents a key point in the lifecycle of a company to raise significant capital and increase brand recognition on a global level. As part of the banking team managing the client’s IPO process, your firm has already been heavily involved as it nears the filing date. From preparing to pitch for the business, winning the right as an underwriter and multiple drafting sessions, the bank understands the client’s strengths and weaknesses inside and out. But how well do you know the industry in which your client plays?
The unbiased perspective of the market
The first confidential filing of the S-1 to the SEC (or corresponding government entity) should not only highlight the company’s historical success but present a compelling case as to why the company is positioned to succeed moving forward. The market overview section in the prospectus is an opportunity to demonstrate the company is part of a growing sector, trending in the right direction and poised to continue grabbing market share in the future.
Independent market research provides a solution by showcasing an unbiased, expert view of the industry. Trusted data and analysis from a reputable research firm increases the likelihood of an expedited legislative review. It is common for the bank of record to have concerns that the company’s internal data does not provide enough proof of growth, which can place a higher level of scrutiny on the prospectus. Using persuasive outside research from industry experts bolsters the qualitative portion within the prospectus.
How market research can help
A strategic market research provider will provide critical statistics such as total market size and the company’s industry share percentage. It’s important to additionally leverage information such as channel analysis and insights into consumer expenditure forecasts to truly showcase your client’s future viability.
Ensuring a review is done in a timely manner is a common concern for an investment bank. A reputable research vendor will have a streamlined process in place to ensure the statistics and analysis are up to date and interpreted in a consistent manner that matches the vendor’s methodology.
Euromonitor International not only provides unbiased, credible research to support your prospectus, we will also review and provide feedback quickly and provide recommendations to bolster the language if necessary. This process is in place to assist with all types of fundraising activities in addition to IPO work including roadshows, debt offerings and more. Euromonitor International will work with your firm to support the client from understanding the analysis until the final sign off authorizing the data.
Our research helps create an independent assessment of an industry sector, helping investors evaluate market conditions, the competitive landscape, and market drivers and constraints.
A selection of IPOs Euromonitor International has worked on include: