A public offering offers private companies tremendous opportunities for growth, but also subject them to rules and regulation they were not required to adhere to when they were private companies. It is crucial for companies to be aware of the potential risks and challenges prior to taking the leap into the public market.
If your company is contemplating an IPO or not, developing an ideal-practice checklist should be the first step to make sure that you’re prepared for the process. An ipo preparation checklist should cover everything from due diligence to stakeholder alignment to the gathering and analysis of financial data. A thorough checklist will help you to find and fill in gaps between where your company is at and where it needs to be before bells ringing for the IPO bell.
If you’re planning on going public it’s a good idea consult with a tax professional to ensure that you’re aware of the different kinds of equity compensations that can impact your tax bill, and prepare in a manner that is tax-efficient. If you’ve made an 83b) election, you may encounter a significant increase in the taxable ordinary income when you go public. If you’re a shareholder with incentive stock option (ISOs) You should prepare for the possibility that you’ll be subject to an alternative minimum tax.
A checklist for click here for more https://designdataroom.com/it-due-diligence-checklist-for-further-developing-processes/ preparing an IPO must also provide guidance around the regulatory compliance requirements that go along with an IPO that includes the Securities and Exchange Commission’s (SEC) registration and disclosure rules. The checklist for IPOs should contain all the steps needed to prepare and submit your Draft Registration Statement/S-1, including submissions of both EDGAR files and iXBRL instances.