IPO Readiness

Exciting. Transformative. Complex. Challenging.

Taking your company public is an exhilarating milestone that forever changes how you do business. But the path to an IPO can be strenuous. Balancing new responsibilities on top of existing ones can challenge leaders of up-and-coming companies. Managing regulatory requirements, investor demands and operational shifts can be a handful. It can make all the difference to navigate this pivotal growth stage with a trusted advisor.

Our IPO Readiness team comprises experienced specialists in technical accounting, risk assurance, transaction advisory and more. They work closely with you and your business from start to finish. The team provides crucial support before, during and after the IPO process.

What is IPO readiness?

IPO readiness consists of a comprehensive set of preparations. This includes strategy, accounting, finance, law and operations. Companies planning to execute an initial public offering (IPO) or special purpose acquisition company (SPAC) merger rely on these preparations. This process typically spans six to twenty-four months. IPO readiness helps ensure that the company effectively completes its transaction.

Moreover, the IPO readiness process sets the company up for success. The company will face vastly new and voluminous requirements as a public reporting entity. The process also helps ensure compliance with regulatory standards, such as those set by the Securities and Exchange Commission (SEC). Above all, it prepares the executive function to handle the challenges and responsibilities of leading a public company.

The private-to-public transition calls for change in many significant areas of business. Each company faces unique strengths and challenges that shape its journey. However, the IPO readiness process for most can be broken into three distinct phases: Assessment, Preparation and Execution.

Here’s what each of these phases includes, along with how we assist at each step.

Phase One: Assessment

Our seasoned advisors dive into your business to kickstart the IPO readiness process. They understand where your company is and where it needs to go. We assess current operations and benchmark them against public company expectations.

Working closely with your leadership team, our team identifies important gaps. We then plan how to bridge these gaps to meet complex regulatory requirements. Key areas include:

• SEC listing method and filing requirements
• Accounting policies, procedures and financial reporting
  -Level of current GAAP and SEC reporting requirement compliance.
  -Major accounting transactions, treatment and documentation.
  -Closing processes and procedures. Internal control compliance.
• Internal control compliance
• IT and technology infrastructure
• Public Company Accounting Oversight Board (PCAOB) audit readiness
• Tax and transfer pricing due diligence
• Resourcing and people management
  -Assessment of current internal team and leaders.
  -Evaluation of workforce’s skills and capabilities.
  -Segregation of duties assessment.
• Corporate governance
  Our assessment will help develop your company’s public readiness roadmap. We lay out a timeline and solid foundation for the work ahead.

Phase Two: Preparation

In the Preparation phase, we close the distance to identify gaps crucial for a successful IPO. We tackle obstacles before auditors and the SEC review your company. Our team implements new policies and technologies and develops regulatory-compliant operations. We offer essential technical guidance in each area:

• Accounting and finance

  – Technical accounting assessments for complex transactions.
  – GAAP-compliant policy and technical memorandums.
  – New standard implementation, such as CECL.
  – Month- and quarter-end closing process acceleration.
  – Valuation advisory services.

• Financial reporting

  – Private to public company financial reporting uplift.
  – Segment reporting and non-GAAP measurements.
  – Financial statement quarterization.

• Internal controls

  – Sarbanes Oxley (SOX) compliance.
  – Committee of Sponsoring Organizations (COSO) framework implementation.
  – Material weaknesses remediation.

• Software implementation and optimization

  – Equity management systems.
  – Enterprise risk management systems.
  – HR and payroll systems.

• Audit support and coordination

• People and HR

  – Public company transition training offerings.
  – Talent acquisition and HR consulting services.
  – Executive compensation benchmarking.

• Process improvement

Phase 3: Execution

After extensive preparation, the Execution phase puts your company in front of regulators. It introduces a broader IPO working team into the process. This includes bankers, lawyers, underwriters and other external consultants.

Having an experienced advisor on board during this stage is crucial. Deadlines become tighter, and more parties get involved. During this stage, our team provides critical assistance. We navigate complex and time-sensitive listing processes:

• IPO project management

  -Project management and coordination efforts with an IPO working group.
  -Advising SEC filing timeline requirements and process through events leading up to transaction effectiveness.

• SEC filings

  -Draft Form S-1 and S-4.
  -Draft financial statements, Management’s Discussion and Analysis (MD&A) and pro-forma schedules.

• SEC comment letters

  -Assist the company in responding to SEC comments.

Beyond the IPO

With the ring of a bell, your company goes public, bringing a burst of optimism and new life. Maintaining momentum can be challenging as leaders adjust to operating publicly.

After a successful IPO, building the proper infrastructure and involving the right people is crucial. We’re here to help you thrive in the post-IPO environment. We support you through subsequent matters, such as:

• Complex technical accounting.
• Merger and acquisition (M&A) activity.
• 10-Ks and 10-Qs.
• Sarbanes-Oxley Act (SOX).
• Environmental, social and governance (ESG) compliance.
• Other growth initiatives.

Why IPO readiness matters

There’s a lot that goes into being ready for an IPO. Without adequate preparation, companies can face serious complications. These can affect the immediate IPO process. They may also have long-term impacts on the company’s health. The complications can disrupt day-to-day operations and harm future market performance. Key risks include:

• Financial misstatements and Generally Accepted Accounting Principles (GAAP) noncompliance.
• Inability to meet audit and financial reporting deadlines.
• Difficulty dealing with regulators and filing requirements.
• Governance deficiencies.
• Day-to-day business disruptions.
• Resource mismanagement.
• Failure to time the market during favorable periods.
• Inability to forecast results for investors.
• Difficulty meeting post-IPO expectations from investors.
• Stakeholder dissatisfaction.

Adequately preparing through IPO readiness is the best way to reduce these risks.

Partner with us: the BPM advantage

Through our expansive experience as a high-growth firm, we know that being good at one thing isn’t enough to support our clients’ needs. Thus, we’re interdisciplinary in more ways than one.

Our IPO readiness team is comprised of well-versed advisors in technical accounting and SEC compliance, risk assurance, transaction advisory, business valuation services and HR consulting. We are all under one roof. Most importantly, we believe that we can best serve our clients when our people think of the big picture and act accordingly.

When you partner with BPM, you get more than just specialists with years of experience in the IPO space. You get:

• Project managers who have the skills to simplify complex processes into manageable steps. We approach each step efficiently and timely.
• Clear communicators who collaborate with your team, auditors, lawyers and bankers toward your IPO goal.
• Advisors who understand long-term growth strategies and integrate the IPO process into your company’s story.

That’s the BPM advantage.

Our IPO readiness services equip companies with the knowledge, structure and strategies they need to jump from private to public. Working with us also provides the following benefits:

• Identify potential roadblocks: Bringing the most up-to-date knowledge on regulatory trending topics and SEC hot button issues. We proactively identify and address the most challenging parts of the IPO process.
• Alleviate your time constraints: Having us handle complex operational assessments, filings and other time-consuming parts of the IPO process. Our services allow you to focus on core business functions.
• Build up your people: Sharing our expert knowledge with your teams. We help bolster in-house talent, setting up your C-Suite and junior members for success post-IPO.

We work with you from the first day of IPO readiness to the first day as a public company and beyond. We’ll be a trusted partner for not only your business but you and your team – Because People Matter.

Is your company IPO ready?

Whether an IPO is years away or today’s biggest priority, it’s never too soon to start the readiness process. Getting your people and your plans primed for a successful listing takes not just time, but experience. You need to know what to look for and how to get things done. We’re committed to helping every step of the way.

Interested in learning more? Reach out to our IPO readiness team – let’s connect.

IPO readiness consulting: Adding value with advisory and compliance support

BPM brings together subject matter expertise and years of experience in SEC compliance and reporting, audit readiness, technical accounting, risk management and advisory, and business processes. We analyze the problems you face and deliver end-to-end solutions in a holistic and cost-effective manner for a successful IPO. Our team:

• Manages IPO process services
• Quarterizes financial information, including month and quarter close process acceleration assistance
• Supports PCAOB audit uplift process
• Converts private company financial statements to conform with SEC regulatory requirements
• Advises companies on segment reporting and non-GAAP measurements
• Drafts Form S-1 and Form S-4 including MD&A, F-Pages, and Pro-forma schedules and updates for balance sheet staleness through IPO effectiveness
• Calculates earnings per share
• Drafts SEC comment letter responses
• Implements COSO 2013 and prepares for SOX readiness and testing