IPO Preparation Checklist

An IPO is among the most significant events in the development of a tech business and signifies value for founders as well as employees and customers. It also imposes new rules, regulations, and standard that may not have been enforced on the company when it was private company. The key to success is to be fully prepared, and that starts with a complete ipo preparation checklist.

The first step is to have an effective system that allows the company to maintain a clean financial record that stands in the eyes of shareholders and regulators. This is a priority for the CFO team and must be addressed long before the IPO timetable. 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 up board committees see this page such as the audit compensation, audit, and special finance.

Another important aspect is having a solid management team that will be capable of executing the expansion plans of the company as it transitions to being public. This is usually the most important factor, other than financial, that should be taken into consideration when making preparations for an IPO. Investors are looking for a competent team of leaders that has demonstrated their expertise.

A seasoned auditor or advisor is required to conduct an IPO readiness test to determine the state of internal control practices, accounting and other issues that must be addressed prior to the IPO. The assessment should be carried out at the beginning of the IPO to allow for any shortcomings to be addressed before they are reported to investors or the SEC.