An IPO is one of the biggest milestones in the development of a tech business and is a symbol of the importance of founders as well as employees, customers and. It also creates the company with a new set of rules, regulations, and requirements that the company might not have been held to as a private enterprise. To be successful, you must be 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 an unblemished record of financial performance that is able to stand the scrutiny of regulators as well as shareholders. This is a priority for the CFO team and should be addressed well before the IPO timeline. This usually means implementing an automated reconciliation process to eliminate errors caused by manual input into 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 special finance, compensation, and audit.
A strong management team is see this page also important. They will be able implement the growth plans of the business when it goes public. This is often the most important non-financial aspect to take into account when preparing an IPO. Investors want to see a capable leadership team with proven experience.
An experienced auditor or advisor is required to conduct an IPO readiness test to determine the current state of internal controls practices, accounting as well as other issues that need to be addressed prior to the IPO. It is recommended to do this assessment early in the IPO process so that any deficiencies can be rectified before they are divulged to investors and SEC.