There are a myriad of challenges involved in launching an IPO and, as the old saying goes, “by failing to prepare, you are preparing to fail.” But with careful planning, strategic foresight and a keen eye for detail, companies can successfully conduct an IPO.
The first step is to conduct a thorough due-diligence by your investment bank, accounting firm and law firm (auditor). This includes a comprehensive review of the company’s financials as well as documents that include historical performance projections, risk factors, and internal controls. This review should be completed prior to the scheduled IPO date in order for companies to deal with any issues that could arise, and possibly delay the listing.
Once due diligence has been completed the next step will be to draft the prospectus and registration statement. This requires an in-depth analysis of the company’s past performance and current performance, identification of and analysis of potential financial risks, as well as drafting strategies to raise capital. Management should be involved with the creation of these documents as they are the best individuals to know the company’s needs and ensure that the content matches with their vision.
After the documents are completed after which they have to be filed with the SEC and listed on an exchange. This process typically requires the help of a financial printer/SEC files that have a deep understanding about the underwriter style and https://designdataroom.com/ma-data-rooms-for-modern-deals-2022/ SEC format requirements. This knowledge can help reduce the risk and liability associated with submissions that are not correct. Carta’s private market liquidity solutions can delay the listing and let you launch your business at the most appropriate time for your company.
()