Le financement des PME : les marchés boursiers constituent-ils une piste sérieuse ?

Abstract

Executive summary The first goal of the financial markets is the financing of the economy, so could they satisfy this need of the SMEs to enable them to lead their projects and continue their development? This research includes the analysis of this financing concept and the objective is to answer to the question of the adequacy of the financing through the capital markets for the SMEs and to define the specific pros and cons of a listing. This work will also attempt to draw the profile of SMEs which have more chance to succeed on the stock exchange. This research will firstly present the theoretical concepts of the stock exchange and IPOs with the consequences of a listing from a SME point-of-view. The theoretical part will also briefly address the alternative ways of equity finance in order to establish a comparison with the stock exchange in terms of the particular advantages of this technique. Secondly, after the descriptive approach, the dynamic research will be made up of the experience of different SMEs listed on the stock exchange, through interviews with leaders within the companies. Moreover, an analysis of the experience of companies and actors of alternative capital financing means is operated, notwithstanding the difficulties to execute a census through leaders of enterprises. After having conducted the analysis, we found out that a specific category of SMEs benefits from an interesting opportunity for a financing through a listing on the stock exchange, namely a company with a strategy of growth, with projects which will create value and with profitability. The firm has also to have the ability to take advantages coming from the listing. However, if the shareholders of a company prefer the retention of a family shareholding in order to sustain their enterprise or if the values shared by the company differ with those of a financial investor, another way of financing should probably be more suitable. The present research shows that the listing offers a leverage on the financing of a company and consequently increases the means of actions of the SME. The company gets a considerable amount of financial resources without creating a risk of bankruptcy which could happen in the case of a too high amount of debts compared to the total balance sheet. Furthermore, the additional financial means available in the future and the notoriety got on the stock exchange contribute to the growth of the SME. Notwithstanding affordable costs of this financing according to the experiences analysed, the necessity to take into account the time devoted to the communication of information to the numerous shareholders and to the introduction process is really important. Moreover, the costs of the preparation of the listing are, for the majority, fixed costs and therefore the relative cost is higher in function of the company size and the floating. However, this report presents a similarity in terms of financial contribution, stage in a company lifecycle and the impact on the cost of capital, between the venture capitalists and the stock exchange. The capital markets stand out by offering a liquidity, even if it is relatively low on the Belgian markets, as well as the increase of the notoriety. Indeed, Business Angels and equity crowdfunding are considered as early stages ventures financing. In the case of a planned disposal of the company within a middle term or long term period, the stock exchange offers a valuation based on the judgments of a high number of investors taking into account additional factors compared to an accounting valuation. All the financing methods based on a stake on the capital decrease inevitably the independence of the entrepreneur. This work also highlights the short term constraint consequent to the listing, but nevertheless, this also impacts the life of the company when a stake is taken by venture capitalists. The only way, at later stages of an enterprise lifecycle, to benefit from a financing of the equity without pressure on short term yield is a financial support from public investment funds.