An IPO is a major milestone in the history of a technology company and provides value to its founders, employees and customers. It also creates new rules, regulations, and standards that have not been enforced on the company when it was an individual company. To be successful, you need to be well-prepared. This begins with a thorough IPO checklist.
The first step is to establish a fully-functional system that allows the company to have an unblemished record of financial performance that is able to stand the scrutiny of regulators and shareholders. This is a major concern for the CFO team and must be addressed long before the IPO timeline. This often includes creating an automated reconciliation procedure to eliminate the manual errors in the data, ensuring the company is in line with the required IFRS and US GAAP compliance, and setting up the necessary committees on the board such as audit as well as compensation and special finance.
Another critical point is having a well-established management team that is capable of executing the expansion plans of the company as it moves to becoming public. This is usually the most important factor, other than financial, to take into account when preparing for an IPO. Investors want to see an experienced and competent leadership team with demonstrated experience.
A seasoned auditor or advisor is required to conduct an IPO readiness assessment to determine the present state of internal control and accounting practices as well as other issues that must be addressed prior to the IPO. It is best to perform this assessment early in the IPO procedure so that any problems can be addressed prior to being divulged to investors and SEC.
https://designdataroom.com/it-due-diligence-checklist-for-further-developing-processes/
