IPO Preparation Checklist
An IPO is a significant event in the development of a tech firm and represents value for its founders, employees and customers. But it also imposes an entire new set of rules, regulations and standards that the company may not have adhered to as a private enterprise. To be successful, you need to be prepared. This starts with a thorough ipo checklist.
The first step is to create an operational system that allows the business to keep an impeccable financial record that can stand in the eyes of shareholders and regulators. This is a priority for the CFO team and should be addressed long before the IPO timeline. This means implementing an automated reconciliation process to eliminate errors in data, making sure that the company is in compliance with IFRS and US GAAP, and setting boards committees like the audit and compensation committees, as well as special finance.
Another critical point is having a solid management team that will be able to execute the growth plans of the company as it transitions to becoming public. This is usually the most important non-financial factor to consider in preparing for an IPO. Investors want to see an experienced leadership team with demonstrated experience.
An experienced advisor or auditor should conduct an IPO readiness test to determine the present state of internal control accounting procedures, internal control as well as other issues that must be addressed before the IPO. It is recommended to conduct this early in the IPO process so that deficiencies can be rectified before they are disclosed to investors and the SEC.