IPO Preparation Checklist

An IPO is among the biggest milestones in a tech company’s lifecycle and represents the importance of founders employees, customers, and employees. It also imposes new rules, regulations and standards that might not have been enforced on the company when it was a private entity. To be successful, you need to be well-prepared. This begins with a thorough IPO checklist.

The first step is to create an effective system that enables the company to keep an impeccable financial record that will stand up to the scrutiny of shareholders and regulators. This is a top concern for the CFO’s team and must be addressed well before the IPO timeframe. This typically means implementing an automated reconciliation process to eliminate errors caused by manual input into the data, and ensuring that the company is on track in achieving IFRS and US GAAP compliance, and setting up necessary committees on the board such as audit, compensation and special finance.

A strong management team is equally important. They will be able to carry out the growth strategies for the company when it goes public. This is usually the most important non-financial element to take into consideration when preparing for an IPO. Investors want a strong leadership team that has shown their capability.

Finally, an IPO readiness assessment should be undertaken by a knowledgeable advisor and/or auditor to determine the status of internal controls as well as accounting practices and other pop over to this web-site issues that need to be rectified prior to the IPO can be conducted. It is recommended to conduct this early in the IPO process to ensure that any issues can be addressed prior to being reported to investors and the SEC.