December 21, 2015
Preparing for IPO – Laying the Groundwork
Posted by Armanino Financial Advisory Team
Preparing for IPO …an often daunting task with a never-ending stream of challenges for a company’s finance leaders. During the recent EVOLUTION conference, Armanino sat down with some top CFOs who have made it through the transition successfully. Peter Bardwick (Nitro), Mike Healy (ShoreTel), Noland Granberry (Nanosys), and Dan Weirich (Treasure Data) covered their top areas of focus during the transition, including building a strong team, setting cost expectations, choosing the right systems, and
First, secure a solid accounting team before your business goes public. The panel commented on the importance of hiring the right people in the right positions to make the transition smoother.
“You really have to rely on your people…if you’re down in the weeds keeping the trains running, you’re not doing the things the board pays the CFO for,” said Peter Bardwick, CFO of document productivity firm Nitro. Weirich, CFO for data analytics firm, Treasure Data, added that your board of directors may need some attention as well because they may be unfamiliar with the public markets if they haven’t gone through the IPO process previously. “You need to politely educate them,” remarked Weirich.
“Make sure you’ve got good systems ready to go, at least the financials…ideally, you’re 6 to 12 months ahead,” commented Mike Healy, senior vice president and CFO of telecommunications firm ShoreTel. Ensuring the right technology is in place will help with the transition and ensuring companies are prepared for whatever data needs they will have while preparing for IPO and in the ensuing months post-IPO.
Lastly, make sure to keep one eye on the outside world. While preparing for IPO can be all-consuming, the panel of experts urged potential IPO companies to be ready for unforeseen challenges. “Expect the IPO to be a lot more work than you might anticipate when you write it out on paper,” said Noland Granberry executive VP and CFO for nanotech firm Nanosys.
Read the full article How to Lay the Groundwork for Your IPO to learn the panel’s insights for driving the private-to-public transition. Learn the keys behind the pre-IPO process and how to prepare for the transition.
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