An IPO is one of the biggest milestones in the development of a tech business and signifies the importance of founders, employees, and customers. It also creates new rules, regulations, and norms that may not have been placed on the company as a private entity. The key to success is to be fully prepared, which starts by completing an ipo preparing checklist.
The first step is establishing an effective system that allows the business to keep an accurate financial record that stands in the eyes of regulators and shareholders. This is a top concern for the CFO’s team and must be addressed before the IPO timeframe. This includes implementing an automated reconciliation procedure to eliminate mistakes in data, making sure that the company is compliant with IFRS and US GAAP, and setting up board committees such as the audit or compensation committee, as well as special finance.
Another essential aspect is having a solid management team that is able to execute the growth plans of the company when it becomes public. This is usually the most important factor, other than financial, to be considered when making preparations for an IPO. Investors are looking for a management team that has demonstrated their capability.
An experienced advisor or auditor is required to conduct an IPO readiness evaluation to determine the present state of internal control practices, accounting as well as other issues that must be addressed prior to the IPO. It is recommended to do this assessment early in the IPO process so that deficiencies can be remedied before being reported to investors and the SEC.