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 entity. It is therefore important that companies understand all the risks and obstacles they could face before taking the plunge into public markets.
If you’re considering an IPO for your business or not, establishing an inventory of best practices is the initial step in ensuring you are well-prepared. The checklist for preparing for an IIPO should include everything from due diligence to stakeholder alignment, to the gathering of financial data and analysis. A thorough checklist will help you to find and fill in gaps between where your company is at and where it must be prior to making the IPO bell.
It is a good idea to consult a tax professional if you’re planning to go public. This will enable you to understand the different types of equity compensation and how they impact your tax cost. You can then prepare in line with this. If you’ve made an 83b) election, you may face a large increase in the taxable ordinary income when you https://designdataroom.com/what-you-need-to-know-about-ipo-process/ go public. If you’re a shareholder with incentive stock option (ISOs), you should consider the possibility of being be subject to an alternative minimum tax.
A checklist for ipo should also include information on the compliance requirements of regulatory authorities that are required for an IPO. This includes the Securities and Exchange Commission (SEC) rules on registration and disclosure. Your IPO checklist should include all the steps needed to prepare and submit your Draft Registration Statement /S-1 and include submissions of both EDGAR files and iXBRL cases.