There are many obstacles to the launch of an IPO, and as the old saying goes, “by failing to prepare for failure, you’re setting yourself up to fail.” However, with careful planning, strategic foresight and meticulous attention to detail, companies can successfully conduct an IPO.
The first step is to conduct a thorough due-diligence by your investment banking institution, accounting firm and law firm (auditor). This involves a thorough examination of all company financials and documents, including historical data as well as current projections, risk factors, as well as internal controls. This process should be carried out prior to the scheduled IPO date to allow companies to address any issues that may occur and delay the IPO.
After due diligence is completed, the next step is to draft the registration declaration and prospectus. This requires a detailed analysis of the performance and history of the business, identification and assessment of financial risks as well as the drafting of strategies to raise capital. Ideally, the management should be involved in the development of these documents as they are the best at assessing the company and can ensure that the content is aligned with their vision of the business moving forward.
When the documents are finished and filed, they need to be filed with the SEC and then listed on the stock exchange. This process usually requires the help of a financial printer/SEC files that have a deep understanding about underwriter style and SEC format requirements. This experience can minimize the risk and liability associated with submitting incorrectly. Carta’s private market liquidity solutions can delay the listing, allowing you to launch your business at the right time for your business.