IPO Advisory Services: What They Do & How They Help

Going public is the exciting end to what is generally a long process that involves improving your organization in many ways over a period of time.

For best results, you should plan to start this process 18 to 24 months before going public — alongside the help and guidance of an IPO advisory specialist to help your company align, design, execute and ring the bell knowing everything has been set up for success.

Everything you need to know about IPO Advisory Services:

1. What is an initial public offering?
2. What is an IPO Advisor?
3. What do IPO Advisory Services do?
4. IPO advisory activities done by firms
5. How will IPO Advisors help during an IPO?
6. How can an IPO Advisory Service help your business?
7. When should you hire an IPO Advisory service?

What is an Initial Public Offering (IPO)?

An initial public offering (IPO) is the process of selling shares of a company to the general public to raise additional capital and bolster company growth. It is often a very costly, challenging and time-consuming process that involves a hefty amount of focus on due diligence, marketing and adhering to regulatory requirements.

What is an IPO Advisor?

An IPO (initial public offering) advisor helps a company navigate the process of becoming a public company for the first time. As part of the IPO process, you will need specialized knowledge of the financial operations, systems and control environment of your industry to adhere to the strict regulatory compliance standards.

What do IPO Advisory Services do?

IPO advisory services, firms and consultants are there to support your company throughout the entire IPO process by implementing better systems for accounting and reporting purposes, ensuring compliance with laws and regulations, and more.

IPO advisory activities done by firms:

• Technical Accounting and SEC Reporting: Implementing GAAP accounting standards and practices, including revenue recognition, leases, credit losses, complex debt and equity arrangement, purchase price accounting and more.
• SOX Preparation: Implementing, performing and maintaining internal controls throughout the business in areas that affect financial statements and reporting.
• Finance Transformation: Assessing current finance function for effectiveness; leveraging people, processes and technology to rework financial strategy and procure actionable insights.
• Audit Readiness and Support: Preparing financial reconciliations, roll forwards and other supporting documentation to ensure a smooth auditing process.
• Financial Planning and Analysis: Budgeting, forecasting and conducting analytical work to support major business decisions and overall financial health.

Our team at Bridgepoint also provides post-IPO support because technical memos, SOX compliance, and SEC reporting need to be continuously monitored to support ongoing operations.

How will an IPO Advisory Service help you through the IPO process?

An IPO advisory service or firm can help during all stages of an IPO, including aligning deliverables, designing technical needs and executing against the required regulations.

Aligning deliverable:

• Developing a roadmap for IPO readiness
• Assessing current accounting and financial reporting processes
• Identify technology caps and provide a remediation plan
• Complete risk assessment to ensure SOX compliance    
• Prioritize financial planning and analysis goals based on initial assessment

Designing technical needs:

• Generate technical memos and PCAOB financials with disclosures
• Develop technology policies and controls
• Identify best practices for SOX compliance and provide a roadmap, matrices, and templates to ensure risk mitigation
• Forecast and modeling design processes for financial planning and analysis function

Execution against required regulations:

• Deploy accounting policies as well as new accounting and financial reporting processes
• Implement technology recommendations and train end users to facilitate adoption 
• Complete operating effectiveness of SOX testing documents
• Support preparation and training of financial planning and analysis procedures

How can an IPO Advisory Service help your business?

• Ensuring the gathering of timely and accurate finance and accounting data
• Bringing the right people onto your IPO team
• Implementing more effective systems and processes to reduce risk, cut down on overhead spend and save time
• Helping maximize the value of the IPO process
• Ensuring compliance with laws and regulations

When should you hire an IPO Advisory Service, Firm or Resource?

Preparing for an IPO 18 to 24 months in advance is best. If your company is looking to go public or considering a capital market transaction, it’s time to reach out to ensure that the process goes as smoothly as possible.

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