Floating your business – selling shares on the stock market – can be highly rewarding financially. It lets you realise your investment in the business by making it easier to sell part or all of your stake.

But any financial exit from the business is likely to be partial. Potential investors will be wary if you sell all your shares – and you may not be permitted to do so.

Any float will also affect other existing shareholders or investors. The shareholders agreement may give existing shareholders pre-exemption or voting rights which may make a float more difficult or reduce the amount you can realise.

Relatively few businesses can realistically expect to float as they are unlikely to be able to finance the necessary growth to attract investors.

If you would like some advice on this subject click here