An IPO offers private companies powerful growth opportunities however, it also entails them to regulations and rules they were not required to adhere to as a private company. Therefore, it’s important for companies to understand all the dangers and risks before taking the leap into the public market.
Whether you are considering an IPO for your company or not, establishing guidelines for best practices is the initial step in ensuring you are prepared. A checklist for an IPO should include everything from stakeholder alignment to due diligence to gathering and analyzing financial data. A thorough checklist will allow you to pinpoint and close holes in your company’s state and where it should be before ringing that IPO bell.
It’s a smart idea to seek out a tax professional if you plan to go public. This will enable you to understand the different kinds of equity compensation and how they impact your tax cost. You can then plan according to the information you have learned. If you have made an 83b) choice, you could face a large increase in the taxable ordinary income when you go public. If you have incentive stock option (ISOs) it is important to be prepared for the possibility that you will be subject to alternative minimum tax.
An ipo preparation checklist should also provide guidance around the regulatory compliance requirements that go designdataroom.com along with an IPO, including the Securities and Exchange Commission’s (SEC) registration and disclosure rules. Your IPO checklist should outline all the steps required to prepare and file your Draft Registration Statement /S-1 which includes submissions of both EDGAR files and iXBRL instances.
