Are you ready? Assess your starting point on the IPO journey
Markets are increasingly volatile and susceptible to various global issues impacting capital flows, from regional conflicts and unstable economies to environmental catastrophes. Foresight and preparation allow you to execute your IPO on your terms when your organization is ready–Preparation is key.
The journey to an IPO: a road map to becoming a public company
Timing and planning are critical for creating a strong and thriving public company. We have broken down the IPO process into four distinct phases to help you understand, step-by-step, what is involved in successfully transforming into a public company:
1. Assess: pre-IPO considerations
Understanding your organization’s readiness to embark on the IPO journey requires answering questions, as well as identifying and filling in any gaps. These may include reviewing the quality of financial reporting, assessing the corporate governance model, considering tax implications, deciding where to list, along with other legal and regulatory matters. Based on this acquired insight a choice for either an IPO alone or a Dual Track can be underpinned.
2. Plan: preparing for the IPO
Creating a detailed plan and timetable to track the status of the IPO process is extremely beneficial. A strong project management team will ensure key milestones and objectives are met in time. During this phase it is critical to develop your communications and investor relations strategies, along with ensuring your corporate governance and Board of Director structures are formalized and robust enough to meet the needs of a public company. Syndicate selection will be crucial for your success in placing your shares.
3. Execute: the IPO “event”
Preparing and filing the prospectus are just two aspects of completing an IPO. Ensuring sufficient controls for CEO/CFO certification are in place, maximizing optimal tax structures and establishing clear reporting processes are all crucial to completing the IPO “event.”
4. Sustain: life after the IPO
Now that your company is public, it’s time to act like it. Developing a plan for ongoing financial reporting commitments, evaluating the status of both internal control gaps and associated mitigation plans will ensure best practices prevail within your newly public operations. Other considerations during this phase could include: monitoring the effectiveness of the Board and management governance structure, creating an ongoing external reporting calendar that includes key timelines and considering employee training and development needs. Becoming listed often requires a change of culture where new obligations should not stand in the way of agility of your team.
Deloitte IPO readiness services: From obligation to opportunity
Businesses that invest time planning how they will operate as a public company – prior to completing their IPO – enjoy the most success. While executing an IPO can be complex, being prepared to operate as a public company can require even more organizational effort and focus.
IPO Readiness Lab
The Deloitte IPO Readiness Lab aims to help companies prepare for going public by engaging participants in the development of clear organizational goals. It helps businesses prioritize activities, enhancing their ability to both meet their IPO timeline and operate as a public company.
Our IPO Readiness Lab is held in the Deloitte Greenhouse™, a space specifically designed to promote collaborative thinking. The Deloitte Greenhouse™ enables new ways of looking at your organization and accelerates the discovery of actionable insights.
In addition to an IPO Readiness Lab, we can perform an IPO readiness assessment to identify potential areas for improvement. Our knowledgeable team can address IPO considerations relevant to your organization in areas such as:
- Equity story & business model
- Financial track record
- Management reporting & budgets
- Corporate governance
- Changes to the corporate culture
- Executive remuneration plans
- Corporate & debt structure
- Internal controls
- Tax structuring & compliance
Taking your company public can seem like an arduous task. It’s a complex and highly regulated process. But the right advice and proper planning can vastly enhance the success of your IPO and help ensure a payoff that justifies all of your efforts. Contact us directly to have one of Deloitte’s experienced professionals explore how our team can help yours.