Benjamin Franklin is credited with the old adage “By not preparing for failure, you’re preparing to fail.” As private companies begin their IPO process, it is a crucial moment that requires a strategic plan and meticulous preparation to ensure success.

The management of this complicated and highly regulated process can be overwhelming and time-consuming for any team. The IPO process involves multiple parties, including underwriters, investment bankers and investors. It is essential to present an articulate equity narrative that will meet market expectations, and provides potential investors with the opportunity to align with your company’s trajectory of growth.

An IPO readiness assessment is among the first steps needed to prepare for an IPO. It considers what a company’s image will look like once it is listed. This allows teams to identify any gaps that need to be addressed early enough to be addressed prior to the IPO timeframe. For instance, a majority of venture-backed companies don’t have financial statements that meet the standards for compliance with public companies. An IPO readiness test identifies this issue and assists finance and legal go to my site teams rectify the situation prior to of the IPO process beginning.

Once the initial preparation has been completed, it’s time to prepare for ongoing regulatory reporting. This involves gaining access to the Securities and Exchange Commission (SEC) EDGAR system. It is essential to establish a team within the IPO to collaborate with your outside law firm on drafting iXBRL and an EDGAR examples of documents. This includes a person who is responsible for uploading exhibits to the SEC and for coordinating with financial printer/SEC documents.