Benjamin Franklin is credited with the old saying “By not preparing for failure, you are preparing to fail.” When private companies begin their IPO process, it’s an important moment that requires strategic planning and thorough preparation to ensure success.
managing this complicated and legally regulated process can be time-consuming and overwhelming for any team. The IPO process involves multiple partners, including underwriters, investment bankers and investors. It is designdataroom.com/ma-data-rooms-for-modern-deals-2022 crucial to provide an articulate equity narrative that addresses market expectations, and provides potential investors with the chance to be aligned with the company’s growth plan.
An IPO readiness assessment is one of the first steps in preparing for an IPO. It considers what a company’s appearance will be like when it is listed. This will help teams identify any gaps that must be addressed before the IPO date. For instance, many venture-backed companies do not have financial statements that meet the requirements for compliance with the public company. A IPO readiness assessment will highlight this issue and help the legal and finance teams rectify the situation well before the IPO process begins.
After the initial preparation work is finished, it’s time to begin preparing for regular regulatory disclosure reporting. This involves gaining access to the Securities and Exchange Commission (SEC) EDGAR system. It’s also important to create an working group within your IPO team to collaborate with your law firm to draft EDGAR as well as iXBRL instance documents. This should include a designated person who will be responsible for uploading exhibits to the SEC and co-ordinating with your financial printer/SEC filer.