Companies can run a successful IPO by planning it carefully as well as strategic insight and attention to detail.
The first step in the process is a thorough due diligence by your investment bank, law firm and accounting firm (auditor). This involves a review of all company financials and documents, including historical data and projections for the present, as well as risk factors, as well as internal controls. This process should be initiated early, prior to the planned IPO date so that companies can solve any potential issues and delay the IPO.
After due diligence is complete the next step is to create the registration statement and prospectus. This requires a thorough review of the history and performance of the company, identification and assessment of financial risks, as well as drafting strategies for raising capital. Management should be involved in the development of these documents as they are the best persons to know the company’s needs and ensure that the content is in line with their vision.
After the documents are completed after which they have to be filed with the SEC and listed on the stock exchange. This usually requires the assistance of a printer for financials and SEC files that have a deep understanding regarding the underwriter style and SEC format requirements. This experience can reduce the risk and responsibility associated with submissions that are not correct. If your team is ready to launch with private markets, Carta’s liquidity solutions can help delay the listing and allow you to launch at the ideal time for your business.
