home hdesigndataroom.com/it-due-diligence-checklist-for-further-developing-processes/
An IPO is a significant event in the development of a technology company and represents value for its founders, employees and customers. It also imposes new rules, regulations, and standard that may not have been imposed on the company as an independent entity. The most important thing to do is be prepared in advance, and that starts with a complete IPO preparation checklist.
The first step is establishing a fully functional system that allows the company to maintain an accurate financial report that can stand up to scrutiny by regulators and shareholders. This is a top priority for the CFO’s team and must be addressed before the IPO timeline. This often includes setting up an automated reconciliation process to eliminate manual errors in the data, as well as ensuring that the company is in line in achieving IFRS and US GAAP compliance, and establishing the necessary committees on the board such as audit as well as compensation and special finance.
A strong management team is also essential. They will be able execute the growth plans for the business when it goes public. This is often the most important factor apart from financial, to consider when making preparations for an IPO. Investors want to see a competent team of leaders with proven experience.
Finally, an IPO readiness evaluation should be conducted by a knowledgeable advisor and/or auditor to determine the status of internal controls as well as accounting practices and other issues that have to be addressed prior to the IPO can take place. It is best to perform this assessment early in the IPO process so that deficiencies can be rectified before they are disclosed to investors and the SEC.