Update July 2010

PMC Introduces IPO Treasury Advisory Services

Private equity sponsors’ and managements’ primary objectives for a successful IPO are to generate broad-based investor interest and a solid share price. However, given recent market developments, having an efficient Treasury function can also have a meaningful impact on the success of an IPO.

During the IPO due diligence process, equity underwriters and transaction services accountants typically focus on the financial statements of the business, relying on management’s representations for the efficiency of the company’s businesses. PMC’s role in the IPO process is to fill the gaps by providing reassurance as to the quality and effectiveness of the treasury operations and compliance with best practices.

PMC consultants bring deep and varied treasury backgrounds to the table, including large public company experience, enabling them to provide everything from policy-level guidance to the Board and C-suite to roll-up-the-sleeves on-site assistance.

PMC’s IPO related work can be a review and assessment of treasury risks and operations from a high level advisory perspective and/or an in-depth analysis coupled with on-site practical support and guidance in specific treasury functions. In all cases, our analysis is reported in a due diligence style with clear and concise insights.

In the pre-IPO phase, a Treasury Review undertaken by PMC will:

Comfort Sponsors, investment bankers and other IPO stakeholders that no hidden risks lie within the Treasury function and that the company has the necessary skills and resources to effectively manage its financial risks
Provide Senior Management and the Board of Directors the confidence that they have implemented Treasury policies and practices that are consistent with best practices and
Identify potential improvements within the Treasury organisation, if appropriate

The period immediately following an IPO can also be especially challenging for Treasury as it adapts to life in a public company environment. During this stage PMC provides guidance and hands-on assistance in:

Organisational Structure
Cash Management, Banking and Debt Management
Foreign Exchange, Interest Rate and Commodity Risk Management
Policies, Procedures, Reporting (internal and external), Systems and Controls

A review of Treasury by PMC is valuable at any time, however an IPO review has the greatest impact if performed at the earliest stage of the IPO process. This allows sufficient time to implement and reap the benefit of any changes and/or improvements that might be recommended as well as maximise the time available to address Treasury related issues that are specific to a public company environment.

If you would like to discuss an IPO Treasury Review engagement, please
contact us.

www.pmctreasury.com

PMC Treasury is an independent corporate treasury advisory firm with clients throughout Europe, the US and Asia-Pacific. Started in 1989, PMC consultants advise clients on operational treasury matters such as treasury functions, best practices & controls as well as interest rate, currency & commodity hedging.

PMC Treasury Ltd | 77 Endell Street | London | WC2H 9DZ |
T: +44 (0) 20 7759 9200

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