Opportunities and challenges of going public as a SME in Hungary

Rita Anna Ambrus, Judit Fábiánné Játékos

Article ID: 8721
Vol 8, Issue 14, 2024

VIEWS - 2 (Abstract) 0 (PDF)

Abstract


Nowadays, finding a suitable solution to the problem of generational change in case of small and medium-size enterprises (SMEs) is becoming increasingly challenging. The aim of this research to investigate whether entering into the stock exchange could be a realistic alternative for Hungarian companies to eliminate this issue. This study reviews the process of Initial Public Offering (IPO) and summarises the advantages and the difficulties of going public. The paper focuses on the opportunities for value creation and saving offered to SMEs by listing on the stock exchange. As primary research on practical experiences, semi-structured in-depth interviews were conducted with the managers of 10 involved companies, and some financial indicators were examined. The research does not cover all relevant companies; however, it is still suitable for drawing a conclusion. The presence on the stock market proved to be useful for the companies and played a significant role in the preservation of the company’s value as well as in financing opportunities. The path demonstrated in this article is suitable for other businesses to follow the pioneers.


Keywords


enterprise value; generational change; initial public offering; SMEs; value saving

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DOI: https://doi.org/10.24294/jipd8721

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