https://designdataroom.com/it-due-diligence-checklist-for-further-developing-processes/

There are a myriad of challenges involved in the launch of an IPO and, according to the old adage, “by failing to prepare you’re preparing to fail.” But with careful planning, strategic foresight, and a meticulous focus on 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 includes a review of the company’s financials as well as documents including historical performance, projections, risk factors and internal controls. This process should begin well before the planned IPO date so that companies can solve any potential issues and delay the IPO.

After due diligence is complete then the next step is to create the registration statement and prospectus. This requires a thorough analysis of the past and present performance of the company, identification and assessment of financial risks, as well as drafting strategies for raising capital. The ideal scenario is that management should be involved in the writing of these documents because they are the best at assessing the company and can ensure that the content is consistent with their vision of the business moving forward.

Once the documents are completed, they must be filed with SEC and then listed on an exchange. This process usually requires the assistance of a financial printer/SEC files that have a deep understanding about underwriter style and SEC format requirements. This experience can reduce the risk and liability that comes with submitting incorrectly. If your team is ready to start, Carta’s private markets liquidity solutions can assist in delaying the listing process and allow you to begin at the ideal time for your company.