There are numerous challenges to the process of launching an IPO, and as the old saying goes, “by failing to prepare for failure, you’re setting yourself up to fail.” However, with careful planning, strategic foresight, and a keen eye for the smallest details, companies can successfully launch an IPO.

The first step is to conduct a thorough due-diligence by your investment banking institution, accounting firm and law firm (auditor). This involves a review of all financials and documents, including historical data, current projections, risk factors, as well as internal controls. This process should begin early, prior to the planned IPO date to allow companies to address any potential issues and delay the listing.

After due diligence is completed the next step will be to write the prospectus and registration statement. This involves a thorough examination of the performance and history of the company, identifying and evaluation of financial risks and strategies to raise capital. Management should be involved with the development of these documents, as they are the best people to understand the company and ensure that the content aligns with their vision.

Once the documents are finalized, they need to be filed with SEC and then listed on an exchange. This process usually requires the assistance of a financial printer/SEC files that have a deep understanding regarding the underwriter style and SEC format requirements. This experience can minimize liabilities and risk associated with incorrect submissions. If your team is ready to get started, Carta’s private markets liquidity solutions can delay the listing process and allow you to begin at the ideal moment for your business.