An IPO is a major milestone in the history of a tech company. It provides value to its founders, employees, and customers. It also sets new rules, regulations, and standards that might not have been imposed on the company as private company. The key to success is to be fully prepared, and that begins with a thorough ipo preparation checklist.
The first step is to establish an operational system that allows the business to keep an uncluttered financial record that can stand up to scrutiny by regulators and shareholders. This is a key concern for the CFO team and should be addressed well before the IPO timetable. This involves implementing an automatic reconciliation process to eliminate errors in data, ensuring that the company is in compliance with IFRS and US GAAP, and setting boards committees like the audit, compensation, and special finance.
A solid management team is also important. They will be able to manage the growth plans for the company once it goes public. This is typically the most important non-financial aspect to take into consideration when preparing for an IPO. Investors are looking for a leadership team that has proven their capability.
An experienced auditor or advisor should conduct an IPO readiness assessment to determine the present state of internal control practices, accounting as well as other issues that must be addressed prior to the IPO. This test should be https://designdataroom.com/what-you-need-to-know-about-ipo-process/ completed at the beginning of the IPO to allow any issues to be addressed prior to being disclosed to investors or the SEC.
