An IPO is a significant event in the life of a tech company. It creates value for its founders, employees, and customers. It also introduces new rules, regulations and norms that may not have been put on the company by a private entity. To succeed, you must be well-prepared. This starts with a thorough ipo checklist.
The first step is to create a fully functional system that enables the company to maintain an uncluttered financial record that can stand in the eyes of shareholders and regulators. This is a major concern for the CFO team and should be taken care of long before the IPO timetable. This typically means implementing an automated reconciliation process to eliminate any errors made by hand in the data, making sure that the company is in line in achieving IFRS and US GAAP compliance, and setting up necessary committees for board members such as the audit special finance, compensation, and audit.
A strong management team is also important. They will be able carry out the growth strategies for the company once it goes public. This is typically the most important factor aside from financial, to be considered when planning for an IPO. Investors are looking for a leader team that has proven their capabilities.
The final step is an IPO readiness evaluation should be conducted by an experienced advisor or auditor to determine the condition of internal controls accounting practices, financial controls, and other issues that will need to be rectified prior to the IPO can be conducted. The assessment should be carried out at the beginning of the IPO to allow for any flaws to be rectified before they are revealed to investors or the SEC.