An IPO is a significant milestone in the history of a technology company and represents value for its founders, employees, and customers. But it also imposes an entire set of rules, regulations, and requirements that the company might not have been held to as a private entity. The most important thing to do is be fully prepared, and that begins by completing an ipo preparing checklist.
The first step is to have a fully functional system that allows the company to keep an accurate financial report that can stand up to scrutiny by regulators and shareholders. This is a top priority for the CFO’s team. It should be addressed well before the IPO date. This involves implementing an automatic reconciliation process to remove errors in data, as well as ensuring that the company is in compliance with IFRS and US GAAP, and setting boards committees like the audit or compensation committee, as well as special finance.
Another critical point is having a strong management team that is capable of executing the expansion plans of the company when it becomes public. This is usually the most important factor other than financial to consider when preparing for an IPO. Investors are looking for a management team that has shown their abilities.
Finally, an IPO readiness evaluation should be conducted by a knowledgeable advisor and/or auditor to determine the condition of internal controls as well as accounting practices and other issues that require correction before the IPO will take place. This assessment should be conducted before the IPO to allow any shortcomings to be addressed before they are reported to investors or the SEC.
