An IPO is a major milestone in the development of a tech firm and represents value for its founders, employees and customers. But 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. The key to success is to be fully prepared, which starts with a thorough ipo preparation checklist.

The first step is establishing an effective system that allows the business to keep an uncluttered financial record that will stand in the eyes of regulators and shareholders. This is a major concern for the CFO team and should be addressed well before the IPO timetable. This involves implementing an automatic reconciliation process to eliminate any errors in data, making sure that the company is compliant with IFRS and US GAAP, and setting the board committees, such as the audit, compensation, and special finance.

Another important aspect is having a strong management team that is capable of executing the plans for growth of the business as it transitions to being public. This is usually the most important aspect aside from financial, to take into account when making preparations for an IPO. Investors want to see an experienced leadership team with a track record of success.

The final step is an IPO readiness assessment should be undertaken by designdataroom.com/what-you-need-to-know-about-ipo-process an experienced advisor and/or auditor to assess the condition of internal controls accounting practices, internal controls, and other issues that will need to be corrected before the IPO is scheduled to take place. The assessment should be carried out before the IPO to allow for any issues to be addressed before they are revealed to investors or the SEC.