The old adage believed to be the work of Benjamin Franklin states, “By not being prepared, you are preparing to fail.” As a large number of private companies begin the IPO process, it is a critical moment which requires a thorough planning and preparation to achieve success.
Controlling this complex and controlled process can be stressful and time-consuming for any team. The IPO process involves a variety of partners, including investment bankers, underwriters and investors. It is crucial to provide a well-articulated equity narrative that meets market expectations and gives potential investors an opportunity to align with the company’s growth plan.
An IPO readiness assessment is one of the first steps to prepare for an IPO. It is a consideration of what a company’s appearance will be like once it is listed. This can help teams determine any areas that need to be addressed prior to the IPO date. Many venture-backed businesses do not have financial reports that meet the requirements of compliance with public companies. A IPO readiness assessment will flag this problem, and help the legal and finance teams rectify the issue before the IPO process gets underway.
Once the initial preparation designdataroom.co work is done, it’s time to get ready for ongoing regulatory reporting. This includes gaining access Securities and Exchange Commission (SEC) EDGAR system. It’s essential to establish a working team within the IPO to work with your outside law firm in the creation of iXBRL and EDGAR examples of documents. This is a key person who is responsible for uploading exhibits to the SEC and coordinating with your financial printer/SEC filer.