An IPO is among the biggest milestones in a tech company’s lifecycle and symbolizes the value of founders as well as employees and customers. It also sets new rules, regulations and standards that have not been imposed on the company https://designdataroom.com/what-you-need-to-know-about-ipo-process/ as private company. To be successful, you need to be prepared. This begins with a comprehensive checklist of ipo.
The first step is creating a fully-functional system that allows the company to maintain an unblemished financial record that is able to stand the scrutiny of regulators and shareholders. This is a top priority for the CFO’s team and should be addressed prior to the IPO timeline. This usually means implementing an automated reconciliation process to eliminate any errors made by hand in the data, ensuring the company is on track with the required IFRS and US GAAP compliance, and setting up necessary committees on the board such as audit special finance, compensation and audit committees.
Another important aspect is having a solid management team that will be able to execute the growth plans of the company as it transitions to being public. This is typically the most important non-financial aspect to consider in preparing for an IPO. Investors are looking for an experienced and competent leadership team with demonstrated experience.
Additionally, an IPO readiness evaluation should be carried out by an experienced advisor and/or auditor to determine the status of internal controls accounting practices, financial controls, and other issues that will have to be addressed prior to the IPO will take place. It is best to perform this early in the IPO process so that any deficiencies can be remedied before being divulged to investors and SEC.
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