The Brief and Only IPO Preparation Checklist You’ll Ever Need

IPO Preparation


Did you know that there have been more than 700 IPOs in 2021? That’s more than twice the average between 2010 and 2019.

More companies are looking to capitalize on a flying stock market to expand or acquire other companies. If you’re looking to gain celebrity status for your company, an IPO could do it.

IPO preparation helps you meet your financial goals and ensures that you’re ready for anything. Keep reading to learn how to prepare to list your company on one of the top stock exchanges.

1. IPO Readiness

Is your business ready to go public? There are more responsibilities that go with being a public company.

Your financials are scrutinized, you have to meet SEC reporting requirements, and audit your financials regularly. You are accountable to shareholders.

They have more power in the corporation. You and your management team might not be ready for such a dramatic shift.

Carefully weigh the benefits and the costs of going public. You’ll know if this is the right time or not.

2. Hire Your Team

The team by your side largely determines your success or failure. This step is a critical part of any IPO checklist.

You’ll start by hiring mentors who understand the IPO process. They can advise you during various steps of IPO preparation.

Underwriters are investment bankers. They work with you and your team to make sure you meet all regulations.

You should have a securities fraud attorney on standby as well. You may not get sued for securities fraud, but you do want to be prepared if it does happen.

3. Complete the Prospectus

The prospectus is a legal document that you need to file with the SEC. It’s a guide for investors that outlines the risks and opportunities of your company.

The prospectus contains valuable information such as your go-to-market strategies, your plans for growth, and the current financials of the business.

4. Register the IPO

You’ll need to file the prospectus and Form S-1 to formally register your IPO with the SEC. This step is completed by underwriters and attorneys.

They make sure your company complies with all reporting and financial regulations.

5. Do the Roadshow

The roadshow is similar to a pre-sale event. In the case of a roadshow, you travel to investors and present the story of your company.

This is your chance to get investors excited about your stock and increase interest. If you have enough interest, you can set a higher IPO stock price.

Upon completion of the roadshow, bankers set the IPO price. Stock valuations get based on investor demand and interest generated during the roadshow.

IPO Preparation for a Successful IPO

An IPO is the culmination of years of work. You don’t want to blow your IPO by missing key steps in IPO preparation. This IPO checklist showed you the most important steps to consider in your initial public offering.

Get these steps right, and you’ll ring the opening bell at the stock exchange.

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