An IPO gives private companies huge growth opportunities however, it also entails them to rules and regulations they weren’t required to follow as a private entity. Therefore, it is essential that companies know all the risks and challenges they could face prior to making the move to public markets.
If your business is contemplating an IPO or not, establishing the best-practice checklist is the first step to ensure you’re prepared for the process. A checklist for preparing for an IPO should cover everything from due diligence to stakeholder alignment, to financial data gathering and analysis. A thorough checklist allows you to discover and close holes in your company’s condition and where it should be before ringing that IPO bell.
If you’re thinking of going public ipo preparation checklist it’s recommended to consult an experienced tax professional to ensure that you’re aware of the various forms of equity compensation that could affect your tax bill and to prepare in accordance with the tax implications. If you’ve made an 83b) choice, you could encounter a significant increase in the taxable ordinary income if you go public. If you’re a shareholder with incentive stock option (ISOs) You should be prepared for the possibility that you’ll be subject to alternative minimum tax.
An ipo preparation checklist should include guidance on the regulatory compliance requirements associated with an IPO, including the Securities and Exchange Commission’s (SEC) registration and disclosure rules. The checklist for preparing your IPO should also outline the necessary steps to prepare and file your Draft Registration Statement/ S-1, as well as the submission of both EDGAR and iXBRL instances files.