For a private company that wants to go public, putting best governance practices into action will make the IPO process go smoother and will prepare the board of directors for the rules and regulations to come. Read this blog for five governance best practices that will get you started on the right foot.
A fast-growing medical device company expects to file for an initial public offering (IPO) next year. The company has offered incentive stock options (ISOs) to their executives and these execs now have the opportunity to exercise early, if they choose to. After the IPO, executives will be forbidden to sell during the 180-day lockup period and there will be limits detailing how much company stock an executive can sell all at once. The executives realize that these economic and tax decisions are more complex than those they have had to make in the past.
For the past five years, Armanino has surveyed CFOs in our Annual CFO Evolution Benchmark Survey, where west coast CFOs are asked about responsibilities, roles and strategic priorities. Based on their responses, market research and our extensive experience as a leading CPA and Consulting firm, we’ve developed an in-depth report titled “Turning Trends to Tactics,” which outlines our findings on these leading trends including IPO, Expansion, M&A, Analysis & Reporting, Mobility, Regulations and Project Management. There is a shift occurring in the CFO role, and Armanino is surveying the CFO community to better understand what is driving this transformation. Matt explains our survey findings in his article.
In one of our most watched on-demand webinars, Getting IPO Ready: Preparing Your Strategy and Equity Plan, experts discuss what it takes to gear up for your IPO and outline essential success factors across the finance organization. Preparing for an IPO takes resources, expertise, and coordination across departments, and the best time to begin the preparation process is now! Below you will find seven key areas affected by an IPO as presented by Nicole Irvin, Vice President, Morgan Stanley Investment Banking Division. Irvin provides detailed information about who from your organization should be involved, what key things you need to be thinking about, and what can you do now – even if you are well in advance of an IPO – to start to prepare.
When privately held companies prepare for an IPO, they have to consider many areas that will be undergoing substantial transformation, such as accounting, legal, corporate governance, and equity incentive programs. The latter is especially important as equity compensation is a key element in the creation of shareholder value.
If there was one takeaway from the “IPO Readiness” track at the Armanino Evolution conference in Silicon Valley last week, it was how much longer it takes to get “IPO ready” than anyone realizes. In this post, we summarize the best practices and recommendations for IPO Readiness discussed at the event.