Benjamin Franklin is credited with the old adage “By not being prepared, you prepare to fail.” As private companies begin their IPO process, it’s an important time that requires a strategic plan and meticulous preparation to ensure success.
Controlling this complex and controlled process can be a challenge and time-consuming for any team. The IPO process involves multiple partners which include investors, underwriters, and investment banks. It is critical to present a clear and well-articulated equity narrative that addresses market expectations and offers potential investors with the chance to align themselves with your business’s growth path.
An IPO readiness assessment is one of the first steps in preparing for an IPO. It takes into consideration what a company will look like designdataroom.com/venue-by-dfin-vdr-review if it’s publicly listed. This can help teams identify any weaknesses that need to be addressed prior to the IPO timeline. Most venture-backed firms don’t have financial records that conform to the requirements of compliance for public companies. A IPO readiness test will reveal this issue, and assist legal and finance teams address the situation well before the IPO process starts.
Once the initial work of preparation is completed, it’s now time to plan for ongoing regulatory reporting. This includes gaining access Securities and Exchange Commission (SEC) EDGAR system. It is also essential to establish an internal working group within the IPO team to collaborate with your legal firm to create EDGAR and the iXBRL instances documents. This will include a person who will be responsible for uploading exhibit files to the SEC and co-ordinating with your financial printer/SEC filer.