An IPO is one of the most significant events in the development of a tech business and signifies value for founders, employees, and customers. But it also creates an entire new set of rules, regulations, and requirements that the company might not have had to adhere to as a private business. To be successful, you must be prepared. This begins with a thorough IPO checklist.
The first step is to create an efficient system that allows the business to keep a clean financial record that will stand up to scrutiny by regulators and shareholders. This is a top priority for the CFO team and must be addressed long before the IPO timetable. 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 with the required IFRS and US GAAP compliance, and setting up necessary committees for the board, such as the audit special finance, compensation and audit committees.
A strong management team is also important. They will be able to execute the growth plans for the company when it goes public. This is usually the most important non-financial element to take into account when preparing an IPO. Investors want a strong leadership team that has shown their capabilities.
Finally, an IPO readiness assessment should be conducted by a knowledgeable advisor and/or auditor to assess the condition of internal controls, accounting practices, and other issues that require correction before the IPO will take place. This assessment should be conducted before the IPO to allow for any shortcomings to be addressed before they are revealed to investors or the SEC.
