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Public Company Compliance Readiness

So, You’re Going Public—What’s Next?

IPO regulations reshape your operational landscape, and viewing an IPO as a mere procedural checklist may overlook critical structural changes essential for post-IPO success. Beyond filing paperwork in the right order, strategic decisions about organizational and leadership structures, impactful operating processes, finance and accounting procedures, and technology frameworks are crucial at this juncture.
Going public introduces a new set of stakeholders—public investors and supporting regulatory authorities—demanding increased transparency into your business’s inner workings, including segments, products, strategies, and locations.

Key considerations

Structural Considerations Pre-IPO:

The comfortable dynamics of pre-IPO growth need reevaluation as regulators define operating segments. These segments, profit centers with distinct financial data, require alignment with leadership structures and chief decision-makers’ analytical processes. Consider how segment reporting will align with your future vision, prompting necessary changes to reporting packages and organizational structures.

Key considerations

New Expectations for Financial Close and Reporting

As a public company, detailed reporting becomes paramount. Prepare for reporting segments, revenue by product, non-GAAP measures, pro-forma financial information, and estimates requiring high judgment. Meeting the 45-day quarter-end reporting deadline necessitates efficient and precise financial close processes, requiring potential investments in finance/accounting processes and supporting technology.

Key questions to ask

Preparing Your People, Process, and Technology for an IPO:

The way you report and how you structure your operating model will have significant impacts on your people, process and technology.  

The interplay between reporting, operating models, and their impact on people, processes, and technology is critical. Leaders must be accountable, and systems must capture necessary metrics. Assess the information produced by the entity to establish proper management review controls. 

Key considerations

Other Considerations for Going Public

Every company faces unique challenges when going public. Some representative actions include:

  • Engage a trusted partner for the labor-intensive S-1 process.
  • Select underwriters and hire external legal securities counsel, a printer, and a transfer agent during the S-1 process.
  • Train management for external communications and establish consistent messaging.
  • Prepare for public company audits and consider quarterly reporting for Early Growth Companies (EGCs).
  • Ensure a well-structured accounts payable process and transition to stock compensation software.
  • Address Sarbanes-Oxley requirements and consider implementing lease accounting software for companies with numerous leases.
  • Decide on the one-time election to delay accounting guidance implementation for EGCs.

Partnering for Success

An IPO is a fundamental change, and planning for its implications on people, systems, and technology is crucial. Our end-to-end expertise can guide you through the entire IPO process, from preparing financial disclosures to establishing a robust public company control environment and organizing your operations for the challenges ahead. 

Connect With Our Leaders

April Coleman

Partner
(603) 686-2020
acoleman@cfgi.com

Chris Brandes

Partner
(201) 694-1561
cbrandes@cfgi.com

Ready To Get Started?

Ready To Get Started?