1 Securities Practice Guide § 4.03

Summary

• [1] Introduction

  Taking a company public requires careful planning in order to ensure a successful securities offering. While it is possible, in some instances, to get ready for an IPO in a few months, most companies take a year or two to prepare, not only to have their securities listed on a national exchange, but also to begin acting like a public company, both internally and externally. With respect to the IPO itself, owners and managers of a private company must attend to a large number of corporate housekeeping items, and early attention to these matters will enhance the company’s ability to conduct an IPO more efficiently (and cost effectively). Careful review and evaluation of the following, among others, are needed to prepare a company for an IPO:

  • •selection of an auditing firm and resolution of accounting issues;
  • •review of the company’s organizational structure;
  • •review of the company’s capital structure;
  • •review of the company’s corporate records to ensure that corporate ...