IPO Preparation Checklist

An IPO can provide private companies with huge growth opportunities however, it also entails them to rules and regulations that they weren’t required to comply with as a private entity. This is why it’s important for companies to understand the potential risks and challenges prior to taking the plunge into public markets.

If you’re considering an IPO for your company or not, establishing an outline of the best practices is the first step in making sure you are prepared. A checklist for an IPO should be able to cover everything from stakeholder alignment to due diligence to analysis and collection of financial data. A thorough checklist will enable you to find and fill in gaps between where your organization is at and where it should be before making the IPO bell.

It is a good idea to seek out a tax professional if you’re planning to go public. This will help you understand the different types of equity compensation and how they can affect your tax bill. You can then prepare accordingly. If you have ipo preparation checklist made an 83b) choice, you could be facing a significant increase in your taxable ordinary income when you go public. If you’re the owner of an incentive stock option (ISOs) You should plan for the possibility that you will be subject to alternative minimum tax.

A checklist for ipo should also include information regarding the requirements for compliance with regulatory regulations which are a part of an IPO. This includes the Securities and Exchange Commission (SEC) regulations regarding registration and disclosure. The checklist for IPOs should contain all the steps needed to prepare and file your Draft Registration Statement/S-1 as well as submissions of both EDGAR files and iXBRL instances.