Preparing Companies for Private Placement Offerings

Companies for private placement offerings in Israel as well as overseas are required to establish structured and control-based work processes.  For this purpose, we perform in-depth assessments of work procedures and the diverse organizational units in Israel and their worldwide subsidiaries, we identify weaknesses in work practices, characterize structured control-based processes, and submit reports to the accompanying body on their existence.

FOUR TYPES OF CONTROLS ARE ASSIMILATED IN WORK PROCESSES

• Preventive controls – a mechanism that prevents unwarranted acts before they are  too late
• Disclosure controls – a mechanism designed to disclose any unwarranted acts which have occurred, to enable the organization to rectify them
• Corrective controls –designed to automatically correct any unwarranted acts
• Compensating controls –designed to provide a response where the control is not sufficiently strong

The structured controls are the most effective mechanisms for preventing unauthorized acts within the organization's operations.  However, owing to cost-benefit considerations, it is not possible in many cases to assimilate structured controls in processes.  In such cases, BDO provides guidance and assistance in characterizing other controls in the form of disclosure, corrective or compensating controls, for the purpose of reporting their existence, usually to the bodies accompanying the organization in private placement offerings.

PREPARING COMPANIES FOR PRIVATE PLACEMENT OFFERINGS IN ISRAEL AND ON FOREIGN STOCK EXCHANGES:

The service includes:

• Assimilating structured work processes in companies for internal purposes and requirements of foreign bodies accompanying the companies overseas
• Establishing controls in the context of current work processes
• Developing the necessary regulatory preventive programs (administrative enforcement, anti-fraud programs, etc.).
• Drafting work procedures commensurate with the accompanying body's requirements