An IPO is among the biggest milestones in the life of a tech company and signifies value for founders employees, customers, and employees. It also creates an entire set of rules, regulations and standards that the company may not have adhered to as a private entity. The most important thing to do is be prepared and that begins with a thorough ipo preparation checklist.
The first step is to establish an efficient system that enables the company to keep a clean financial record that can stand up to scrutiny by shareholders and regulators. This is a top concern for the CFO’s team and should be addressed well before the IPO date. This typically means the implementation of an automated reconciliation process to eliminate the manual errors in the data, ensuring the company is on track with the required IFRS and US GAAP compliance, and establishing the necessary committees for the board, such as the audit special finance, compensation, and audit.
Another crucial aspect is having a solid management team that is in a position to implement the growth plans of the company when it becomes public. This is usually the most important non-financial element to consider when preparing for an IPO. Investors are looking for a management team that has demonstrated their capability.
Additionally, an IPO readiness assessment should be conducted by a knowledgeable advisor and/or auditor to determine the condition of internal controls accounting practices, internal controls, and other issues that need to be corrected before the IPO can pop over to this web-site take place. This test should be completed early in the IPO to allow any deficiencies to be corrected prior to being disclosed to investors or the SEC.