IPO Preparation Checklist

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An IPO is among the most important milestones in the life of a tech company and is a symbol of value for the founders as well as employees and customers. But it also creates an entire new set of rules, regulations, and standards that the company may not have had to adhere to as a private enterprise. The key to success is to be prepared and that begins with a complete ipo preparation checklist.

The first step is to establish a fully functional system that enables the company to keep a clean financial report that can stand up to the scrutiny of shareholders and regulators. This is a top priority for the CFO’s team. It should be addressed well before the IPO timeframe. This often includes setting up an automated reconciliation process to eliminate any errors made by hand in the data, as well as ensuring that the company is in line in achieving IFRS and US GAAP compliance, and setting up the necessary committees for board members such as the audit special finance, compensation and audit committees.

Another crucial aspect is having a solid management team that is capable of executing the expansion plans of the company as it transitions to becoming public. This is usually the most important aspect, other than financial, to consider when planning for an IPO. Investors are looking for an experienced leadership team with proven experience.

Additionally, an IPO readiness assessment should be undertaken by an experienced advisor or auditor to determine the state of internal controls, accounting practices, and other issues that require correction before the IPO will take place. It is recommended to conduct this early in the IPO process so that any deficiencies are rectified prior to being divulged to investors and SEC.