An IPO can provide private companies with huge growth opportunities, but it also subjects them to regulations and rules they weren’t required to follow when they were a private company. Therefore, it is essential that companies know all the risks and challenges they could face prior to making the leap to public markets.

If your company is thinking of an IPO or not, establishing an effective checklist is the first step to ensure that you’re prepared for the process. A checklist for an IPO should be able to cover everything from stakeholder alignment due diligence to gathering and analyzing financial data. A thorough checklist can help you to Digitization in M&A pinpoint and close the gaps in your company’s state and where it should be prior to ringing the IPO bell.

If you’re thinking of going public it’s best to consult with a tax professional to make sure you’re aware of the various forms of equity compensations that can impact your tax bill, and to prepare accordingly. For instance, if made an 83(b) choice, be aware that you may be subject to a substantial increase in ordinary income tax deductible on IPO day. If you’re holding incentive stock options (ISOs) It is important to plan for the possibility of alternative tax liabilities that are minimal.

A checklist for preparing an IPO must provide information on the regulatory compliance requirements associated with an IPO and should include the Securities and Exchange Commission’s (SEC) registration and disclosure rules. Your IPO checklist should outline all the steps needed to prepare and submit your Draft Registration Statement /S-1 as well as submissions of both EDGAR files and iXBRL instances.