An IPO is a major event in the lifecycle of a technology company and provides value to its founders, employees, and customers. But it also imposes an https://designdataroom.com/it-due-diligence-checklist-for-further-developing-processes/ entire set of rules, regulations, and standards that the company may not have had to adhere to as a private entity. To be successful, you need to be well-prepared. This starts with a thorough IPO checklist.
The first step is to create an operational system that allows the company to keep an impeccable financial record that stands in the eyes of regulators and shareholders. This is a top priority for the CFO’s team. It should be addressed well before the IPO timeline. This can include the implementation of an automated reconciliation process to eliminate errors caused by manual input into the data, as well as ensuring that the company is on track with the required IFRS and US GAAP compliance, and setting up the necessary committees for the board, such as the audit special finance, compensation and audit committees.
A strong management team is equally important. They will be able manage the growth plans for the business when it goes public. This is usually the most important aspect apart from financial, to take into account when making preparations for an IPO. Investors are looking for an experienced leadership team that has demonstrated their expertise.
Additionally, an IPO readiness evaluation should be carried out by an experienced advisor or auditor to determine the state of internal controls as well as accounting practices and other issues that need to be rectified prior to the IPO can be conducted. It is recommended to conduct this assessment early in the IPO process to ensure that any issues are rectified prior to being revealed to investors and the SEC.
