An IPO is a significant milestone in the life of a technology company and is a source of value for its founders, employees and customers. It also sets new rules, regulations, and standards that have not been enforced on the company when it was private company. To succeed, you must be well-prepared. This starts with a comprehensive checklist of ipo.
The first step is to establish a fully functional system that enables the company to maintain a clean financial record that can stand in the eyes of regulators and shareholders. This is a top concern for the CFO’s team and should be addressed before the IPO date. This includes implementing an automatic reconciliation process to eliminate any errors in the data, ensuring the company is compliant with IFRS and US GAAP, and setting the board committees, such as the audit and compensation committees, as well as special finance.
Another important aspect is having a solid management team that is in a position to implement the plans for growth of the business as it transitions to being public. This is typically the most important factor other than financial to consider when preparing for an IPO. Investors are looking for a leadership team that has demonstrated their abilities.
An experienced auditor or advisor is required to conduct an IPO readiness evaluation to determine the state ipo preparation checklist of internal control practices, accounting as well as other issues that must be addressed before the IPO. It is recommended to conduct this early in the IPO process so that any deficiencies can be rectified before they are reported to investors and the SEC.