An IPO is a significant milestone in the development of a technology company and provides value to its founders, employees and customers. However, it also comes with a whole new set of rules, regulations, and standards that the company may not have adhered to as a private entity. To be successful, you need to be prepared. This begins with a comprehensive ipo checklist.
The first step is creating a fully functional system that enables the company to keep an impeccable financial record that can withstand the scrutiny of regulators as well as shareholders. This is a key concern for the CFO team and should be taken care of long before the IPO timeline. This usually 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 setting up the necessary board committees like the audit, compensation and special finance.
Another critical point is having a strong management team that will be in a position to implement the growth plans of the company as it transitions to becoming public. This is often the most important aspect aside from financial, to consider when planning for an IPO. Investors want a strong leadership team that has shown their capabilities.
An experienced advisor or auditor https://designdataroom.com/venue-by-dfin-vdr-review/ is required to conduct an IPO readiness assessment to determine the present state of internal control accounting procedures, internal control along with other issues that need to be addressed before the IPO. It is best to do this assessment early in the IPO process so that deficiencies can be addressed prior to being divulged to investors and SEC.
