The old adage believed to be the work of Benjamin Franklin states, “By failing to prepare you are prepared to fail.” When a number of private companies embark on the IPO process, it is a crucial moment that requires meticulous planning and preparation to be successful.
Controlling this complex and controlled process can be a challenge and time-consuming for any team. The IPO process involves a variety of partners which include investors, underwriters, and investment banks. It is critical to present an enlightened and clear equity story that meets market expectations and provides potential investors with the chance to be a part of your company’s growth path.
An IPO readiness assessment is one of the first steps to prepare for an IPO. It considers what a company’s appearance will be like when it is publicly listed. This can help teams identify any weaknesses that require attention well in advance of the IPO timeline. For instance, a majority of venture-backed companies do not have financial statements that meet the requirements for public company compliance. A IPO readiness test will reveal this problem, and help legal and finance teams to correct the situation before the IPO designdataroom.com/what-you-need-to-know-about-ipo-process process starts.
Once the initial preparation work is done, it’s time to plan for ongoing regulatory reporting. This involves obtaining access Securities and Exchange Commission’s (SEC) EDGAR filing system. It’s also important to establish an internal working group within the IPO team to collaborate with your external law firm to prepare EDGAR and iXBRL example documents. This should include someone who is responsible for uploading exhibits into the SEC, and co-ordinating with financial printers/SEC documents.
