designdataroom.com/what-you-need-to-know-about-ipo-process
An IPO is among the most important milestones in a tech company’s lifecycle and represents the importance of founders employees, customers, and employees. It also creates new rules, regulations and standards that have not been imposed on the company as an independent entity. The most important thing to do is be prepared and that begins by completing an ipo preparing checklist.
The first step is to create an operational system that enables the company to maintain a clean financial record that will stand in the eyes of shareholders and regulators. This is a top priority for the CFO’s team and should be addressed prior to the IPO date. This often includes setting up an automated reconciliation process to eliminate manual errors in the data, ensuring the company is in line in achieving IFRS and US GAAP compliance, and creating the necessary committees for the board, such as the audit, compensation and special finance.
Another critical point is having a well-established management team that will be able to execute the growth plans of the company when it becomes public. This is usually the most important factor in addition to financial, that should be taken into consideration when planning for an IPO. Investors want a strong leadership team that has demonstrated their abilities.
An experienced auditor or advisor should conduct an IPO readiness assessment to determine the current state of internal control, accounting practices along with other issues that need to be addressed before the IPO. This assessment should be performed before the IPO to allow for any deficiencies to be corrected prior to being disclosed to investors or the SEC.