Many private companies see an initial public offering as a means to grow their business. However, this is a complex process and comes with a significant risk. It requires detailed planning and strategic thinking to ensure long-term success.

The first step in preparing an IPO is to create and articulate your equity story which explains to investors the path you are taking towards value creation and distinguishes your company from competitors. This is vital for establishing an attractive valuation and attracting the attention of analysts, investment bankers and underwriters.

The next step is review your leadership team and management. You must ensure that your management team is able of managing an designdataroom.com/venue-by-dfin-vdr-review IPO that is a high-risk venture. For instance, an IPO could trigger additional financial reporting requirements as well as tax implications, which might require the addition of an accountant or tax expert to the executive team. Additionally, you will need to decide if you want to use dual-class stock, which gives the founders as well as senior managers different voting rights.

A strong track record of financial accountability and control is crucial for an IPO. This includes having a well-defined SOX program, which must be in place and updated prior to the IPO. It’s also important to check your current system of records such as minutes, capitalization files, material agreements and historic options grants. This is essential for meeting SEC requirements and bank underwriters. It’s important to find out whether there are any „material weaknesses“ in the controls of your company so that you can correct them prior to going public.