Royal Mail privatisation: how, when, why (and why not) to invest Or you could avoid brokers altogether and buy direct from the Government This will be by post (address details to be confirmed) or via a link provided here. How can I find out more about Royal Mail's business and revenues? You can read the Royal Mail's own document in PDF form here. It contains useful snapshots of the business's financial performance: Should you invest? Individuals keen to dive in will have to study the valuations very carefully when the initial share price is announced. Royal Mail has only recently become profitable again after a tumultuous five years leading up to 2011, during which some 50,000 staff were laid off. Behind the troubles is a steep decline in the amount of mail delivered to the UK's 29 million postal addresses. At its peak in 2005, the Royal Mail's daily postbag topped 84 million. This number has since fallen to around 58 million, thanks to the internet, email and mobile phones. Business Secretary Vince Cable says giving the company "commercial freedom" is crucial to its future success. But critics rightly ask whether private management, who will feel pressure to satisfy shareholders at every turn, will look for savings by cutting jobs and increasing prices. The company should be similar to other utility firms in having clear earnings and a slow and steady business model - some of the key ingredients in paying regular dividends to incomeseeking shareholders. It is also slowly adapting to the digital future. As the amount of letters sent in the UK has fallen, parcel deliveries have boomed alongside the take-off in online shopping, and now account for half of its business. The parcels and logistics industry is believed to be worth around £75bn in total, although Royal Mail will continue to face competition for its share from firms such as DHL. The Government's ongoing involvement does represent a source of concern, however. Royal Mail will remain the UK's main postal provider, and its public responsibilities will continue to dictate the way it is run, as will its commercial agreement with the Post Office, which lasts until 2022. Chuka Umanna, Labour's shadow business secretary, has questioned whether these burdens of responsibility are effectively a competitive disadvantage that could depress the share price at launch. The Government will also retain powers to intervene if competitive forces start to threaten Royal Mail. Stockbrokers, independent financial advisers and analysts are likely to publish opinions over coming days and weeks - and we will publish many here on this site, along with other updates. Paul Taylor of McCarthy Taylor, the financial planner and wealth manager, for instance, has been quick to sound caution. He said: "The privatisation of British Telecom in 1984 was popular with the two million that applied for shares. Many other well-known names, such as British Gas, Rolls Royce and others, were sold off and many ended up as global businesses, generating significant profits and are the cornerstone of many a portfolio and pension fund. Can we be so confident about Royal Mail? At first glance there are reasons to be concerned. Is this a sustainable business model? Although postage costs have been increased substantially, volumes have fallen as increasingly communication is by email or social networks. Ofcom will prevent rampant price rises, it is suggested but so too will market forces. It is argued by some that the future of the Royal Mail is in the delivery of parcels and packages, as internet shopping replaces the high street. But that means Royal Mail will have to compete with the established courier and parcel market. The adoption by taxpayers of the Royal Mail pension liabilities, will give the float a chance, but the price has to be right, if this is going to succeed. How have other privatised postal firms fared? One case history for comparison is Deutsche Post, the German post office group, which floated in 2000 and has gone from strength to strength. Mr Cable referred to its ability to raise funds on the money markets as a reason for its success. Its share price has performed particulary well since tumbling during the 2008 and 2009 stock market turmoil. It has risen from a low of €6.64 to a high of €23.32 today. But investors should note that the price is the same as it was a decade ago. Yahoo Finance's interactive Deutsche Post chart How previous privatisations shares have fared Of the array of companies privatised over the past few decades, only a handful have gone awry. The most high-profile failure was Railtrack, which went into administration in 2001. But the Government will hope that Royal Mail's future has more in common with British Gas: the energy company's sell-off, fuelled by the Tell Sid advertising campaign that appeared almost daily on British television, was an investment success story. The company has since split into three: in 1997 it spawned Centrica, the retail arm, and BG, its exploration business; then from BG a gas pipeline operation, National Grid Transco, was created. Someone who spent £1,350 on 1,000 British Gas shares at privatisation would now own 936 shares in BG Group (worth £10,858 today), 891 shares in Centrica (£3,335), and 308 in National Grid (£2,341), according to figures compiled by Hargreaves Lansdown in July. So their holding would now be worth £16,534 - before dividends are included. All three are regarded as solid businesses that pay reliable dividends. The British Airways privatisation in 1987 was also extremely popular. A lot of people who applied for shares were unable to buy as many as they had hoped, such was the strength of demand. Those who did manage to bag a slice of the company made an almost instant gain. On the first day of trading, shares surged from the 65.5p issue price to close at 109p. BA has survived the September 11 disaster, health scares, war disruption, volcanic ash clouds, a financial crisis and the rise of budget airlines. It recently merged with Spain's Iberia, and is cooperating with another, American Airlines, to secure its future. The Government insists there will be no immediate change of structure at Royal Mail. But such promises may not last for ever. Read more views on Royal Mail shares. Enter your email to get our newsletter