An IPO is a major milestone in the history of a tech company. It represents value for its founders, employees, and customers. However, it also comes with a whole new set of rules, regulations and requirements that the company might not have adhered to as a private business. To be successful, you need to be well-prepared. This begins with a comprehensive checklist of ipo.
The first step is creating a fully-functional system that allows the company to have an impeccable financial record that is able to withstand the scrutiny of regulators and shareholders. This is a top concern for the CFO’s team, and should be addressed prior to the IPO date. This often includes the implementation of an automated reconciliation process to eliminate the manual errors in the data, making sure that the company is in line with the required 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 well-established IT due diligence checklist management team that will be in a position to implement the plans for growth of the business as it transitions to being public. This is usually the most important aspect aside from financial, that should be taken into consideration when planning for an IPO. Investors want to see an experienced leadership team that has demonstrated their expertise.
The final step is an IPO readiness evaluation should be carried out by an experienced advisor and/or auditor to assess the condition of internal controls accounting practices, financial controls, and other issues that have to be addressed prior to the IPO can take place. This test should be completed at the beginning of the IPO to allow for any deficiencies to be corrected before they are reported to investors or the SEC.
