IPO Readiness: Top Questions to Ask Before Going Public 

For lower to middle-market companies, preparing for an initial public offering (IPO) is an exciting yet demanding journey. The scrutiny of audit findings, the need to fortify internal controls, and the pressure to meet regulatory requirements can be overwhelming – and many organizations underestimate the level of financial and operational rigor required to successfully go public.  

As experts in helping growing organizations pave the way to a successful IPO, we’ve outlined some essential questions to ask before starting the IPO readiness process alongside practical tips and steps to ensure success. 

IPO Readiness: Top Questions to Ask Before Going Public 

Taking a company public is a pivotal decision that requires careful planning – especially considering that over 80 percent of IPOs fail. For more information about the top reasons why IPOs fail and expert tips to avoid this happening to you, head to our blog: Main Causes of IPO & SPAC Failures & Tips to Avoid. 

Below are key questions help assess IPO readiness and identify critical gaps. 

1. Is our financial reporting framework IPO-ready? 

Public companies must meet stringent SEC and GAAP reporting standards, ensuring financial statements are accurate, transparent, and delivered on time. Any inconsistencies or delays can damage credibility with investors and regulators.  

Companies should assess whether they have robust accounting policies, complete and accurate quarterly financials, and the properly documented internal controls required for external PCAOB audits. A lack of readiness in this area can result in costly delays or regulatory penalties. 

2. Have we established strong internal controls and SOX compliance measures? 

The Sarbanes-Oxley Act (SOX) mandates rigorous internal control frameworks to prevent fraud and ensure financial integrity. Companies need to establish documented policies and procedures, conduct risk assessments, and implement regular control monitoring to identify and mitigate vulnerabilities.  

A weak control environment can expose an organization to financial misstatements, compliance violations, and reputational damage — ultimately affecting investor confidence. 

3. Are our current technology and financial processes scalable? 

Many private companies rely on outdated financial systems that struggle to handle the increased reporting and compliance demands of a public company. A scalable ERP solution, like NetSuite, is essential for streamlining accounting close and financial reporting processes, automating reporting, and ensuring data accuracy.  

Without modern financial infrastructure, companies risk inefficiencies, reporting errors, and an inability to meet the demands of institutional investors and regulators. 

4. How well is our corporate governance structured? 

Investors expect strong corporate governance as a signal of long-term stability and accountability. Companies must establish independent boards, implement rigorous audit committee oversight, and ensure that risk management policies align with public company expectations.  

Poor governance structures can deter investors, attract regulatory scrutiny, and ultimately undermine post-IPO success. Organizations should evaluate whether their governance practices demonstrate transparency, ethical leadership, and shareholder protection. 

5. Do we have the right executive leadership and financial expertise? 

Transitioning to a public company brings heightened responsibilities for executive leadership, particularly the CFO and finance team. The role of a public company CFO extends beyond traditional financial management to include investor relations, regulatory compliance, and strategic decision-making.  

Companies should assess whether their leadership team has experience navigating public markets or if interim CFOs and financial consultants are needed to fill critical knowledge gaps. Without seasoned leadership, companies risk missteps that can erode investor trust and hinder successful IPO readiness efforts. 

Companies also need to assess the IT team’s knowledge and capabilities to support a robust control environment of the systems supporting financial reporting. 

6. How are we positioning ourselves in the market? 

An IPO is not just a financial event — it’s a storytelling opportunity that shapes investor perception. Companies need to articulate a compelling narrative that highlights their competitive advantage, market potential, and financial health. This involves developing a clear messaging strategy, preparing investor presentations, and ensuring consistency in public disclosures.  

FP&A plays a critical role in this process by developing financial projections and forecasts that support the company’s investment thesis. These insights help quantify growth potential, validate key messaging points, and ensure that financial narratives align with investor expectations. 

A poorly communicated story can lead to equally poor investor demand, undervaluation, or post-IPO stock volatility. Ensuring a well-crafted investor relations strategy will set the foundation for a successful public debut. 

Practical Tips and Steps to Ensure IPO Readiness 

Taking the necessary steps to ensure IPO readiness can significantly reduce the risk of delays, compliance issues, and valuation concerns. Companies that proactively assess their financial, operational, and governance structures position themselves for a smoother transition into the public market.  

Quick tips and steps to ensure IPO readiness: 

• Conduct an IPO readiness assessment to evaluate financial health, governance, and operational scalability to identify gaps and prevent costly delays. 

• Strengthen financial controls and reporting to ensure compliance with GAAP and SEC standards, improve accuracy, and minimize regulatory risks. 

• Implement or upgrade cloud-based ERP systems like NetSuite to support public company reporting and compliance. 

• Assemble a high-performing IPO team by engaging IPO consultants, investment bankers, legal advisors, and experienced CFOs. 

• Develop a strategic investor relations plan to communicate growth potential, competitive advantage, and long-term vision to build investor confidence. 

• Engage external expertise for a smooth transition and navigate regulatory requirements, mitigate risks, and optimize processes. 

Final Thoughts on IPO Readiness: Top Questions to Ask Before Going Public 

Going public is a transformational milestone, but IPO readiness is a complex, multi-step process that requires extensive preparation. Companies that take a structured approach — focusing on financial controls, governance, technology, and investor relations — are more likely to succeed in the public markets.  

While the process can be demanding, careful planning and expert guidance make it more manageable. Bridgepoint Consulting specializes in helping middle-market companies navigate this transition smoothly.