IPO Preparation Checklist

An IPO is among the most important milestones in the development of a tech business and is a symbol of value for the founders as well as employees, customers and. But it also creates an entire new set of rules, regulations, and requirements that the company might not have adhered to as a private enterprise. The key to success is to be prepared which starts with a complete IPO preparation checklist.

The first step is to have a fully functional system that enables the company to keep an unblemished financial report that can withstand the scrutiny of regulators and shareholders. This is a key concern for the CFO team and should be taken care of long before the IPO timetable. This means implementing an automated reconciliation process to remove errors in data, as well as ensuring that the company is compliant with IFRS and US GAAP, and setting up committees for board members such as the audit compensation, audit, and special finance.

Another essential aspect is having a solid management team that will be capable of executing the plans for growth of the business when it becomes public. This is typically the most important aspect apart from financial, that should be taken into consideration when preparing for an IPO. Investors are looking for a management team that has proven their capability.

An experienced auditor or advisor should conduct an IPO readiness assessment to determine the state of internal control accounting procedures, internal control, as well https://designdataroom.com/it-due-diligence-checklist-for-further-developing-processes/ as other issues that must be addressed prior to the IPO. This assessment should be conducted prior to the IPO to allow for any issues to be addressed before they are reported to investors or the SEC.