An IPO is among the biggest milestones in the life of a tech company and represents value for founders employees, customers, and employees. It also introduces new rules, regulations, and standards that have not been imposed on the company as private company. The most important thing to do is be prepared which starts with a thorough ipo preparation checklist.
The first step is establishing an operational system that allows the company to maintain an impeccable financial report that can stand up to scrutiny by shareholders and regulators. This is a top concern for the CFO's team and must be addressed before the IPO timeframe. This means implementing an automated reconciliation process to remove errors in data, ensuring that the company is in compliance with IFRS and US GAAP, and setting boards committees like the audit compensation, audit, and special finance.
Another important aspect is having a strong management team that will be capable of executing the expansion plans of the company when it becomes public. This is typically the most important non-financial aspect to consider in preparing for an IPO. Investors want to see a capable leadership team with a track record of success.
A seasoned auditor or advisor should conduct an IPO readiness evaluation to assess the state of internal control accounting procedures, internal control and other issues that need to be addressed prior to the IPO. It is best to perform this early in the IPO procedure so that any problems can be addressed prior to being reported to investors and the SEC.