https://designdataroom.com/what-you-need-to-know-about-ipo-process/
An IPO is among the most significant 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 company. To be successful, you need to be prepared. This starts with a comprehensive checklist of ipo.
The first step is to establish a fully-functional system that allows the company to have an unblemished financial record that is able to withstand the scrutiny of regulators and shareholders. This is a top priority for the CFO team and must be addressed long before the IPO timetable. This means implementing an automated reconciliation process to eliminate any errors in data, as well as ensuring that the company is compliant with IFRS and US GAAP, and setting up committees for board members such as the audit compensation, audit, and special finance.
Another important aspect is having a strong management team that will be able to execute the growth plans of the company when it becomes public. This is usually the most important factor aside from financial, to be considered when preparing for an IPO. Investors are looking for a management team that has shown their abilities.
An experienced auditor or advisor should conduct an IPO readiness test to determine the current state of internal controls accounting procedures, internal control, as well as other issues that must be addressed before the IPO. It is recommended to conduct this early in the IPO process so that deficiencies can be remedied before being reported to investors and the SEC.
