An IPO offers private companies powerful growth opportunities however, it also entails them to regulations and rules they weren’t required to follow as a private company. It is crucial for businesses to How to use digital data room for business deals understand all of the potential dangers and risks before taking the plunge into public markets.
If your company is thinking of an IPO or not, establishing a best-practice checklist should be the first step in ensuring that you’re prepared for the process. A checklist for IPOs should be able to cover everything from stakeholder alignment to due diligence to the collection and analysis of financial data. A thorough checklist will allow you to identify and close gaps between where your organization is and where it must be before you ring the IPO bell.
It is a good idea to seek out a tax professional if you’re planning on going public. This will help you understand the different types of equity compensation and how they affect your tax bill. You can then prepare in line with this. For instance, if made an 83(b) decision, you should be aware that you may be subject to a huge increase in your taxable ordinary income on IPO day, and if you have incentive stock options (ISOs) It is important to plan for the possibility of alternative minimum tax liability.
A checklist for preparing for an IPO should provide information on the regulatory compliance requirements associated with an IPO that includes the Securities and Exchange Commission’s (SEC) registration and disclosure rules. Your ipo checklist should include all the steps required to prepare and submit your Draft Registration Statement/S-1 and include submissions of both EDGAR files and iXBRL examples.