Many private companies are considering an initial public offering (IPO) as a strategic way to expand their business. But the process isn’t easy and carries significant risk and requires meticulous planning and strategic foresight to ensure long-term success.

The first step in preparing an IPO is to formulate and present your equity narrative that explains to investors the path you are taking towards value creation and distinguishes your business from other companies. This is vital for establishing an attractive valuation and attracting the attention of analysts, investment bankers and underwriters.

The next step is to review the leadership team and management. An IPO is a risky business, so you want to be sure your management team is capable of handling it. For instance an IPO can bring on additional financial reporting requirements and tax implications, which could require adding an expert in tax or finance to the executive team. You’ll also need to decide pop over to this web-site if you want to have dual-class shares, which gives the founders as well as the top managers different voting rights.

A strong track record of financial control and accountability is essential for an IPO. This means having a clearly defined SOX program, which should be in place and up-to-date prior to the IPO. It is also essential to review your current records system, including minutes, material agreements, capitalization files and old options grants. This is crucial for meeting SEC requirements and bank underwriters. It is crucial to determine if there are any potential “material weaknesses” in the company’s controls to ensure that you have the controls in place prior to going public.