IPO Preparation Checklist

Sep 4, 2024

IPO Preparation Checklist


An IPO is a major event in the development of a technology company and represents value for its founders, employees and customers. It also creates new rules, regulations and standards that have not been put on the company by a private entity. The most important thing to do is be prepared in advance, and that begins with a complete ipo preparation checklist.

The first step is to establish a fully functional system that allows the business to keep an accurate financial record that stands up to the scrutiny of shareholders and regulators. This is a top priority for the CFO team and should be taken care of long before the IPO timeline. This includes implementing an automatic reconciliation procedure to eliminate mistakes in data, making sure that the company is compliant with IFRS and US GAAP, and setting up committees for board members such as the audit or compensation committee, as well as special finance.

Another critical point is having a strong management team that is in a position to implement the growth plans of the company as it transitions to being public. This is typically the most important non-financial element to take into consideration when preparing for an IPO. Investors are looking for a leader team that has proven their ability.

An experienced advisor or auditor should conduct an IPO readiness assessment to determine the current state of internal control practices, accounting as well as other issues that need to be addressed before the IPO. This assessment should be conducted at the beginning of the IPO to allow for any shortcomings to be addressed before they are disclosed to investors or the SEC.

dfin data room