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An IPO is a significant event in the life of a tech company and creates value for its founders, employees and customers. However, it also comes with a whole new set of rules, regulations, and standards that the company may not have adhered to as a private entity. The key to success is to be prepared in advance, and that begins by completing an ipo preparing checklist.
The first step is establishing an effective system that enables the company to maintain a clean financial report that can stand against the scrutiny of regulators and shareholders. This is a top priority for the CFO’s team, and should be addressed prior to the IPO date. This typically means setting up an automated reconciliation process to eliminate the manual errors in the data, as well as ensuring that the company is on track in achieving IFRS and US GAAP compliance, and creating the necessary committees on the board such as audit special finance, compensation, and audit.
A solid management team is also important. They will be able to carry out the growth strategies for the business when it goes public. This is usually the most important factor other than financial to consider when preparing for an IPO. Investors want to see an experienced leadership team with demonstrated experience.
A seasoned auditor or advisor is required to conduct an IPO readiness test to determine the state of internal control practices, accounting and other issues that need to be addressed before the IPO. This test should be completed at the beginning of the IPO to allow for any issues to be addressed before they are disclosed to investors or the SEC.
