Benjamin Franklin is credited with the old adage “By not planning, you prepare to fail.” When private companies begin their IPO process, it is an important moment that requires strategic planning and meticulous preparation to be successful.

The management of this complicated and highly regulated process can be overwhelming and time-consuming for any team. The IPO process involves multiple partners which include investors, underwriters, and investment banks. It is crucial to present a clear and well-articulated equity story that addresses market expectations and offers potential investors the chance to match their interests with your company’s growth path.

One of the first steps in IPO preparation is to conduct an IPO readiness assessment, which will consider what a company’s needs to appear like when it is publicly listed. This will help teams discover any gaps that need to be addressed before the IPO timeframe. Most venture-backed firms do not have financial reports that comply with the requirements of compliance for public companies. A IPO readiness assessment flags this issue, and helps legal and finance teams correct the situation prior to of the IPO process kicking off.

Once the initial work of preparation is completed, it’s now time to begin preparing for ongoing regulatory reporting. This involves obtaining access to the Securities and Exchange Commission’s (SEC) EDGAR filing system. It’s essential to establish an effective team within the IPO to collaborate with your law firm outside on drafting EDGAR and iXBRL example documents. This will include a person who will be responsible for uploading exhibits to the SEC and working with your financial printer designdataroom.co and SEC filer.