IPO Preparation Checklist

Many private companies consider an initial public offering (IPO) as a strategic option for growing their business. But this process is complex and comes with a significant risk. It requires careful planning and strategic planning to ensure long-term success.

The first step in preparing for an IPO is to create and communicate Digitization in M&A your equity story that communicates to investors your plan for value creation and differentiates your business from other companies. This is essential for establishing an attractive valuation and attracting the interest of analysts, investment bankers and underwriters.

The next step is to review the leadership team and management. An IPO is a risky venture which is why you need to ensure that your management team is capable of handling it. For example, an IPO could trigger additional financial reporting requirements as well as tax implications, which could require adding an expert in tax or finance to the executive team. Additionally, you will need to decide if you want to have dual class stock, which gives the founders and other managers the right to vote in a different manner.

A record of financial accountability is crucial for an IPO. This includes having a clearly-defined SOX programme, which should be in place and revised prior to the IPO. It is also necessary to review your current system of records. This includes minutes, capitalizations files, material agreements, and older option grants. This is essential for ensuring that you meet SEC and bank underwriter requirements. It is essential to determine whether there are any “material weaknesses” in the company’s controls so you can fix these prior to going public.