Benjamin Franklin is credited with the old adage “By not preparing for failure, you’re preparing to fail.” As private companies begin their IPO process, it is an extremely crucial time and requires strategic planning and meticulous preparation to ensure success.
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 essential to present a clear and well-articulated equity story that meets market expectations and provides potential investors with the opportunity to align themselves with your company’s growth trajectory.
One of the first steps in IPO preparation is to conduct an IPO readiness test, which takes into account what a company’s requirements to appear like once it is publicly traded. This can help teams determine any areas that need to be addressed prior to the IPO date. Many venture-backed companies don’t have financial statements that conform to the requirements of compliance for public companies. A IPO designdataroom.com/what-you-need-to-know-about-ipo-process readiness test will reveal this issue and help finance and legal teams correct the situation before the IPO process starts.
Once the initial preparation work is done then it’s time to begin prepping for ongoing regulatory disclosure reporting. This includes obtaining access Securities and Exchange Commission’s (SEC) EDGAR filing system. It’s also important to establish an working group within your IPO team to work with your external law firm to draft EDGAR and IXBRL sample documents. This should include someone who is responsible for uploading exhibits to SEC and for working with the financial printer/SEC documents.