IPO Preparation Checklist

There are numerous challenges to launching an IPO, and as the old saying goes, “by failing to prepare for failure, you’re setting yourself up to fail.” However, with careful planning, strategic thinking, and a meticulous focus on detail, companies can successfully conduct an IPO.

The first step of the process is a thorough due diligence exercise by your investment bank, law firm and accounting firm (auditor). This involves a comprehensive review of all company financials and documents including historical data, current projections, risks, and internal controls. This review should begin well before the planned IPO date, to allow companies to deal with any potential issues and delay the listing.

Once the due diligence process is completed, the next step is to prepare the registration statement and prospectus. This requires a detailed analysis of the history and performance of the company, identifying and assessment of financial risks as well as the drafting of strategies for raising capital. Management should be involved with the development of these documents since they are the best individuals to know the company’s needs and ensure that the content aligns with their vision.

Once the documents are finalized and filed, they need to be filed with the SEC and listed on an exchange. This process usually requires the help of an SEC filer or financial printer who is well-versed in underwriter style and SEC formatting requirements. This experience can minimize the risk and liability associated with submissions new article that are not correct. Carta’s private market liquidity solutions can delay the listing and let you launch your business at the right timing for your business.

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