Companies can conduct a successful IPo by focusing on the right planning along with strategic planning and concentration on the details.
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 as well as documents, including historical performance, projections of risk factors, as well as internal controls. This process should be initiated prior to the scheduled IPO date to allow companies to deal with any potential issues and delay the listing.
After due diligence is completed the next step will be to create the prospectus and registration statement. This requires a detailed analysis of the history and performance of the company, identification and evaluation of financial risks as well as the drafting of strategies to raise capital. Ideally, management should be involved in the development of these documents because they are the best at assessing the company and can ensure that the content is consistent with their vision for the business’s future.
When the documents are finished, they must be filed with the SEC and listed on an exchange. This process usually requires the help of a financial printer/SEC files, who is knowledgeable regarding the underwriter style and SEC format requirements. This knowledge can help reduce the liability and risk associated with incorrect submissions. Carta’s private market liquidity solutions can delay the listing so that you can launch your business at the right time for your business.