Benjamin Franklin is credited with the old adage “By not being prepared for failure, you are preparing to fail.” As private companies begin their IPO process, it’s a crucial moment that requires a strategic plan and meticulous preparation to be successful.
This complex and regulated procedure can be daunting for any team. The IPO process involves a wide range of partners, including investors, underwriters, and investment banks. It is crucial to provide a well-articulated equity narrative that will meet market expectations, and offers potential investors the chance to be aligned with your company’s trajectory of growth.
An IPO readiness assessment is one of the first steps in preparing for an IPO. It considers the way a company will appear like when it is publicly listed. This will help teams discover any gaps that require attention well in advance of the IPO timeframe. Many venture-backed businesses don’t have financial records that meet the requirements of compliance with public companies. A IPO readiness test identifies this issue and can help legal and finance teams to rectify the situation in advance of the IPO process getting underway.
After the initial preparation work is finished then it’s time to begin making preparations for the ongoing regulatory disclosure reporting. This involves gaining access to the Securities and Exchange Commission (SEC) EDGAR system. It’s also important to establish an internal working group within the IPO team to work with your law go to my site firm to draft EDGAR as well as the iXBRL instances documents. This should include someone who is responsible for uploading exhibits into the SEC and for coordination with financial printers and SEC files.