If you’re considering taking your company public, you might want to consider insight from other CEO’s who have been down a similar path. Before their company’s initial public offering (IPO), many of these business leaders wish they had taken advice from other entrepreneurs. Specifically, they feel they should have devoted more time to the following aspects of their business ahead of going public.
Appoint a Strong CFO
Your chief financial officer will become the face of your business as far as investors are concerned, so you want someone who is qualified, assertive, and passionate. Your CFO will take control of the company’s finances as well, ensuring the business is fully prepared for its IPO.
Build a Strong Finance Team
This is a department within your business that can only function well with the brightest minds at work. Your finance team should be able to interpret data and generate useful reports efficiently and upon request. Your tax professionals, controllers, treasurers, and financial planners should all work well together and be able to address problems as they arise, so investors aren’t faced with negative surprises at the end of each quarter.
Install Administrative and Financial Systems
While this is something you would have to do anyway, waiting for your business to grow is unwise. These types of applications can help you keep a tighter grasp of your business from an operational and financial point of view, reducing the risks of errors that could negatively impact your business. More accurate reporting will help you manage every aspect of your business more efficiently, which will help you keep investors happy.
Build a Board You Can Trust
You will have to be able to trust your board to help you keep your company moving forward, but that may not be possible if the board is comprised solely of investors. Bringing in independent individuals to serve on the board can create a more well-rounded group. Making these changes early will help you create a board that will act in the business’ interests even before the IPO.
There may be many more concerns that you’ll need to address before the IPO is presented. Essentially, your primary concern should be to surround yourself with qualified and trustworthy financial professionals. If you can rely on their insight as the company goes public, you’ll have a better chance of making the best decisions for your business’ future.