There are a myriad of challenges involved in launching an IPO, and as the old adage goes, «by failing to prepare, you are preparing to fail.» However, with careful planning, strategic foresight and an utmost attention to detail, companies can successfully launch an IPO.
The first step is to conduct a thorough due-diligence by your investment bank, accounting firm and law firm (auditor). This includes a thorough review of the company’s financials as well as documents that include historical performance projections, risk factors, and internal controls. This process should be conducted well before the scheduled IPO date in order for companies to resolve any issues that might be uncovered and could delay the IPO.
Once due diligence is complete then the next step is to draft the registration declaration and prospectus. This requires a thorough analysis of the history and performance of the company, identifying and evaluation of financial risks, as well as drafting strategies for raising capital. Management should be involved in the creation of these documents since they are the best people to know the company’s needs and ensure that the content is aligned with their vision.
Once the documents are finalized after which they have to be filed with the SEC and then listed on a stock exchange. This process typically requires the help of a financial printer/SEC files that have a deep understanding of the underwriter style as well as SEC format requirements. This knowledge can help reduce the liability and risks associated with erroneous submissions. If your team is ready to get started, Carta’s private markets liquidity solutions can help defer the listing and allow you to start at the perfect moment for your business.
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