New Free Cash Flow Criteria for SME IPOs

From September 2024, SMEs aiming to go public must meet new free cash flow to equity (FCFE) requirements. Our latest blog post delves into these regulatory changes, their impact on financial planning and IPO eligibility, and provides practical advice for businesses to prepare for these new standards. Learn how to strategically manage cash flow, enhance operational efficiencies, and position your SME for a successful public listing.

Starting September 2024, small and medium enterprises (SMEs) looking to list on certain platforms will need to meet new financial health requirements, including demonstrating positive free cash flow to equity (FCFE) for at least two of the three preceding financial years. This significant regulatory change aims to bolster the quality of listed companies and reduce investment risks.

Source: corporatedebtrecovery.co.uk