There are many obstacles to the process of launching an IPO, and according to the old adage, “by failing to prepare for failure, you’re setting yourself up to fail.” However, with careful planning, strategic foresight and a meticulous focus on particulars, companies are able to 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 involves a review of the company’s financials and documents such as historical performance projections as well as risk factors and internal controls. This review should be completed prior to the planned IPO date to allow companies to deal with any issues that could arise and potentially delay the listing.
Once the due diligence is complete the next step is to prepare the registration statement and prospectus. This requires an in-depth analysis of the company’s past performance and current performance, identification of and analysis of potential financial risks, and developing strategies to raise capital. Management should be involved in the development of these documents, as they are the best individuals to know the company’s needs and ensure that the content aligns with their vision.
After the documents are completed, they must be filed with SEC and listed at a stock exchange. This process typically requires the assistance of an SEC filer or financial printer who is experienced in underwriter style and SEC formatting requirements. This knowledge can decrease the risk and liability associated with submitting the wrong information. Carta’s private market liquidity solutions can delay the listing, allowing you to launch your business at the best time for your business.
Recent Comments