An IPO is a significant event in the development of a technology company and represents value for its founders, employees and customers. It also imposes new rules, regulations, and standards that have not been put on the company by private company. To be successful, you need to be well-prepared. This begins with a comprehensive ipo checklist.
The first step is to establish a fully functional system that enables the company to maintain an accurate financial record that can stand in the eyes of regulators and shareholders. This is a top concern for the CFO’s team. It should be addressed before the IPO timeline. This can include creating an automated reconciliation procedure to eliminate manual errors in the data, ensuring the company is in line with the required IFRS and US GAAP compliance, and setting up necessary board committees like the audit special finance, compensation, and audit.
Another critical point is having a solid management team that will be capable of executing the growth plans of the company as it transitions to being public. This is typically the most important factor other than financial to take into account when preparing an IPO. Investors want to see a capable leadership team with proven experience.
The final step is an IPO readiness assessment should be conducted by an experienced advisor and/or auditor to determine the state of internal controls as well as accounting practices and other issues that will have to be addressed prior to the IPO is scheduled to take place. This assessment should be performed prior to the IPO to allow any deficiencies to be corrected before they are disclosed to investors or the SEC.
