Jun 08, 2015
From the Advisory Institute
IPOs are likely to remain a popular exit strategy this year. While the rewards of being listed on a public exchange can be huge, it is important that any company considering an IPO make sure that it understands all of the financial reporting and regulatory requirements. Making a mistake once a company is public has much more serious consequences than making the same error while private. That said, several steps can minimize IPO mistakes.
Companies should have their financial statements audited by a top tier accounting firm, create white papers that address any complex accounting issues, develop a robust budgeting and forecasting function, implement a close calendar that allows companies to complete SEC filings in a timely manner, and put in place processes that comply with Sarbanes-Oaxley. Instituting these well thought out processes should help to avoid costly IPO mistakes.
Read our June M&A Spotlight to learn more.