ABSTRACT
This chapter focuses on the financial aspects of the preparatory process. It considers briefly the strategic aspects of the process where immediate fund-raising requirements have to be ranked with other objectives in determining the form the sale will take. The chapter focuses on the financial aspects of preparing for privatisation, in particular the changes in capital structure and funding to allow financial self-sufficiency and the various ways this has been achieved. It examines the preparation involved in enabling a public enterprise to achieve accounting comparability with the private sector, including changes in accounting policies and reporting. After all the structural decisions have been finalised, legislation must be drawn up to allow the industry to be sold, to vest its assets and business in one or more public limited companies (PLC) and to define the rights and responsibilities of those PLCs.
