An IPO is a major event in the lifecycle of a tech company. It is a source of value for its founders, employees and customers. It also introduces new rules, regulations and norms that may not have been enforced on the company when it was an individual company. The key to success is to be prepared which starts by completing an ipo preparing checklist.
The first step is to establish a fully-functional system that allows the company to maintain an impeccable financial record that can withstand the scrutiny of regulators and shareholders. This is a top priority for the CFO’s team and must be addressed prior to the IPO timeframe. This often includes implementing an automated reconciliation process to eliminate errors caused by manual input into the data, and ensuring that the company is in line with the required IFRS and US GAAP compliance, and establishing the necessary committees for the board, such as the audit, compensation and special finance.
A solid management team is also crucial. They will be able carry out the growth strategies for the company How to use digital data room for business deals once it goes public. This is often the most important non-financial factor to consider when preparing for an IPO. Investors want to see a capable leadership team that has demonstrated their expertise.
An experienced advisor or auditor is required to conduct an IPO readiness test to determine the current state of internal control accounting procedures, internal control along with other issues that need to be addressed before the IPO. It is recommended to conduct this assessment early in the IPO process so that any deficiencies are rectified prior to being disclosed to investors and the SEC.