how to choose M&A vs IPO

@bkkdealgirls

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The video breaks down complex financial concepts into easily digestible explanations with clear on-screen text and spoken narration, making it highly educational and shareable for entrepreneurs and investors.

Summary

This video explains the difference between an IPO and M&A for businesses. It details the types of shares offered in an IPO, the concept of dilution, and the lock-up period. It then contrasts this with M&A, outlining fully exit and partial exit strategies, and their respective pros and cons.

Structure

1Introduction to IPO vs M&A
2Explanation of IPO: types of shares, dilution, lock-up period
3Explanation of M&A: fully exit vs partial exit
4Comparison of IPO and M&A timelines and objectives
5Conclusion: asking yourself what you want

On-screen text

how to choose M&A vs IPO รู้ได้ยังไง How do you know ว่าต้องเลือกอะไร? what to choose? IPO when a private company sell its shares to the public on stock exchange for the first time to raise capital IPO คือการพาบริษัท IPO is when you take you company เข้าตลาดหลักทรัพย์ public, listing on the stock exchange โดยเปิดให้คนทั่วไป allow people to เข้ามาถือหุ้นได้ buy your shares หุ้นในการขาย IPO shares in the IPO sale จะแบ่งออกเป็นสองแบบ come into two types แบบแรกนะ The first คือการออกหุ้นใหม่ Is newly issued shares ที่เงิน this money จะเข้าบริษัทโดยตรง goes directly into the company โดยจะเป็นประเภทหุ้นหลัก This is the main stock type ที่ถูกเสนอขายตอน IPO offered during an IPO Dilution When a company creates new shares, existing owners own a smaller piece of the company than they did before ซึ่งพอจำนวนหุ้นของบริษัท increases สัดส่วนหุ้นของเจ้าของเดิม the proportion of shares of the existing owner ก็จะลดลง get diluted Existing shares/ Secondary shares คือการขายหุ้นเดิม is selling existing shares ของเจ้าของ of the owner ในกรณีนี้ This is คือการ cash out basically a cash out เงินเข้ากระเป๋าตัวเอง money goes directly to owner's pocket But if you sell too many of secondary shares, นักลงทุนเค้าก็อาจจะมอง investors will question กับอนาคตบริษัทนั้น to the company's future so IPO is the right move Is the right move Raise large capital Build credibility สร้าง credibility build credibility and still want to stay in control and still want to stay in control แต่ what's something many people อาจจะไม่รู้ค่ะ don't know is that after the IPO หุ้นเดิมของเจ้าของ the remaining shares of existing owners จะยังขายทันทีไม่ได้ can't be immediately sold There's a lock-up period ต้องรอ lock-up period อีกประมาณ 3-6 เดือน of roughly 3-6 months post listing ถึงจะขายออกไปได้ค่ะ before you can sell Is that life after the IPO is completely different You are subject to a ton of regulations รายงานผลประกอบการ performance reporting ทุกไตรมาส every quarter full transparency and constant pressure from investors and in term of timeline you'll need to prepare for at least 2-3 years and the cost while for the M&A For seller, it is when you sell all or part of your company to a buyer might make more sence if what you want Fully exit Sell all shares in the company to a buyer คือ 1 fully exit คือ 1 fully exit You're done with the business อยากได้เงินมาเลย จบ or 2 who can help you scale You bring in a business partner with network or distribution that you don't have Partial exit Sell part of shares in the company to bring in a partner with the resources and network to help the business grow faster But the trade of is you may no longer be the primary decision maker and the timeline is generally faster than the IPO depending on readiness and deal structure around 6-8 months In short, Raise capital Still in control IPO Raise capital Still in control go IPO Exit Scale fast Exit Scale fast But if you want many things, want both partners and partial exit There's also a deal structure that give you both But before you decide anything ask yourself Transaction objective what you objective is เราต้องการอะไร what you actually want

Original caption

เลือกยังไงว่าจะ IPO หรือ M&A #IPO #mergersandacquisition #investmentbanking #entrepreneur #การเงิน

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Transcript

how to choose M&A vs IPO รู้ได้ยังไง How do you know ว่าต้องเลือกอะไร? what to choose? IPO when a private company sell its shares to the public on stock exchange for the first time to raise capital IPO คือการพาบริษัท IPO is when you take you company เข้าตลาดหลักทรัพย์ public, listing on the stock exchange โดยเปิดให้คนทั่วไป allow people to เข้ามาถือหุ้นได้ buy your shares หุ้นในการขาย IPO shares in the IPO sale จะแบ่งออกเป็นสองแบบ come into two types แบบแรกนะ The first คือการออกหุ้นใหม่ Is newly issued shares ที่เงิน this money จะเข้าบริษัทโดยตรง goes directly into the company โดยจะเป็นประเภทหุ้นหลัก This is the main stock type ที่ถูกเสนอขายตอน IPO offered during an IPO Dilution When a company creates new shares, existing owners own a smaller piece of the company than they did before ซึ่งพอจำนวนหุ้นของบริษัท increases สัดส่วนหุ้นของเจ้าของเดิม the proportion of shares of the existing owner ก็จะลดลง get diluted Existing shares/ Secondary shares คือการขายหุ้นเดิม is selling existing shares ของเจ้าของ of the owner ในกรณีนี้ This is คือการ cash out basically a cash out เงินเข้ากระเป๋าตัวเอง money goes directly to owner's pocket But if you sell too many of secondary shares, นักลงทุนเค้าก็อาจจะมอง investors will question กับอนาคตบริษัทนั้น to the company's future so IPO is the right move Is the right move Raise large capital Build credibility สร้าง credibility build credibility and still want to stay in control and still want to stay in control แต่ what's something many people อาจจะไม่รู้ค่ะ don't know is that after the IPO หุ้นเดิมของเจ้าของ the remaining shares of existing owners จะยังขายทันทีไม่ได้ can't be immediately sold There's a lock-up period ต้องรอ lock-up period อีกประมาณ 3-6 เดือน Of roughly 3-6 months post listing ถึงจะขายออกไปได้ค่ะ before you can sell Is that life after the IPO is completely different You are subject to a ton of regulations รายงานผลประกอบการ performance reporting ทุกไตรมาส every quarter full transparency and constant pressure from investors and in term of timeline you'll need to prepare for at least 2-3 years and the cost while for the M&A For seller, it is when you sell all or part of your company to a buyer might make more sence if what you want Fully exit Sell all shares in the company to a buyer คือ 1 fully exit คือ 1 fully exit You're done with the business อยากได้เงินมาเลย จบ or 2 who can help you scale You bring in a business partner with network or distribution that you don't have Partial exit Sell part of shares in the company to bring in a partner with the resources and network to help the business grow faster But the trade of is you may no longer be the primary decision maker and the timeline is generally faster than the IPO depending on readiness and deal structure around 6-8 months In short, Raise capital Still in control IPO Raise capital Still in control go IPO Exit Scale fast Exit Scale fast But if you want many things, want both partners and partial exit There's also a deal structure that give you both But before you decide anything ask yourself Transaction objective what you objective is เราต้องการอะไร what you actually want