IPO Preparation Checklist

Public offerings provide private companies powerful opportunities for growth, but it also subjects to home hdesigndataroom.com/it-due-diligence-checklist-for-further-developing-processes/ regulations and rules they were not required to follow when they were private businesses. Therefore, it is essential that companies understand all the risks and obstacles they might face prior to making the leap to public markets.

If your company is contemplating an IPO or not, creating a best-practice checklist should be the first step to ensure that you’re ready for the process. A checklist for preparing for an IPO should include everything from due diligence to stakeholder alignment to the gathering of financial data and analysis. A thorough checklist will enable you to pinpoint and close gaps between where your company is at and where it should be before you ring the IPO bell.

If you’re considering going public it’s best to consult with a tax professional to ensure that you’re aware of the various forms of equity compensation that can impact your tax bill, and to plan in accordance with the tax implications. For example, if you’ve made an 83(b) option, be aware that you could be subject to a large increase in taxable ordinary income on IPO day. Also, if you’re holding incentive stock options (ISOs) it’s important to prepare for the possibility of an alternative tax liabilities that are minimal.

A checklist for ipo should also include information about the regulatory compliance requirements that are required for an IPO. This includes the Securities and Exchange Commission (SEC) rules on disclosure and registration. Your ipo checklist should include all the steps required to prepare and submit your Draft Registration Statement/S-1 as well as submissions of both EDGAR files and iXBRL instances.