20 Analyse the factors that private company should consider before converting into a public limited. [6]

[Abbas17]

(KN) Capital Requirements
(AN) Going public can provide access to a larger pool of capital through the sale of shares to the public allowing the company to fund ambitious growth plans
(AN+) The company should conduct a detailed financial analysis to determine the amount of capital needed and the potential impact on ownership structure and control

(KN) financial preparedness
(AN) this includes having audited financial statements, robust internal controls, and transparency in financial reporting. which may risk the business bankruptcy
(AN+) Engaging experienced financial advisors and auditors can help ensure that the company's financials meet the standards expected by public investors and regulators