There are many challenges to the launch of an IPO and, as the old adage goes, "by failing to prepare you're preparing to fail." However, with careful planning, strategic foresight and a keen eye for detail, companies can successfully conduct an IPO.
The first step is to conduct a thorough due-diligence by your investment bank, accounting firm, and law firm (auditor). This involves a thorough examination of all financials and documents including historical performance, current projections, risk factors, as well as internal controls. This process should be carried out prior to the planned IPO date to enable companies to resolve any issues that might arise and potentially delay the IPO.
Once due diligence is completed, the next step is to draft the registration statement and prospectus. This requires a detailed analysis of the history and performance of the company, identification and assessment of financial risks and strategies to raise capital. Management should be involved in the creation of these documents, as they are the best people to understand the company and ensure that the content matches with their vision.
After the documents are finalized, they need to be filed with SEC and then listed on the stock exchange. This process typically requires the help of an SEC filer/financial printer who is experienced in underwriter style and SEC formatting requirements. This knowledge can reduce liabilities and risk of erroneous submissions. Carta's private market liquidity solutions can delay the listing, allowing you to launch your business at the right time for your company.