An IPO is a major milestone in the life of a tech company. It provides value to its founders, employees and customers. It also creates new rules, regulations and standard that may not have been enforced on the company when it was a private entity. To succeed, you must be well-prepared. This starts with a comprehensive checklist of ipo.
The first step is establishing a fully functional system that enables the company to keep an uncluttered financial report that can stand up to scrutiny by regulators and shareholders. This is a top priority for the CFO team and should be taken care of long before the IPO timeline. This often includes setting up an automated reconciliation process to eliminate any errors made by hand in the data, as well as ensuring that the company is on track in achieving IFRS and US GAAP compliance, and establishing the necessary board committees like the audit special finance, compensation, and audit.
Another crucial aspect is having a strong management team that is capable of executing the growth plans of the company as it moves to becoming public. This is usually the most important non-financial factor to take into consideration when preparing for an IPO. Investors are looking for a leadership team that has shown their capabilities.
An experienced auditor or advisor is required to conduct an IPO readiness test to determine the current state of internal controls accounting procedures, internal control along with other issues that must be addressed before the IPO. It is recommended to conduct this assessment early in the IPO process to ensure that any issues can be remedied before being revealed to investors and the SEC.
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