Guide to Public Company Transformation: Frequently Asked Questions

The public company readiness process

The decision about whether to go public can feel overwhelming. To begin our guide, we focus on key considerations in the IPO decision-making process, including the pros and cons of going public and determining the best time to pursue an IPO.

Efficient financial close

Legal and regulatory considerations

Of course, an IPO requires more than a strong team, a well-orchestrated plan and effective financial reporting processes. As we discuss in the following pages, pre-public companies need to ramp up their efforts to comprehend and comply with the numerous regulatory requirements that come with being publicly held, including, but certainly not limited to, Sarbanes-Oxley.

Sarbanes-oxley act compliance

Legal and procedural considerations

Governance considerations

At this juncture, it’s fair to say that pre-public companies are keeping plenty of plates spinning, from regulatory compliance challenges to their financial systems and a broad range of business transformation efforts. Amid these many changes, as we cover in this section, pre-public companies must also establish and improve their corporate governance practices to build a solid foundation for an IPO. Critical decisions to make include, among other issues, the composition of the board of directors, what form an internal audit function may take, and whether the company will be required to have a code of conduct.

Additional compliance and corporate governance considerations

A scalable IT environment

Risk management consideration

Even superheroes should look before they leap. Companies seeking to undertake a successful IPO and face their future with confidence must address risks most common to pre-public companies. Read on for guidance regarding board committees, D&O insurance, executive compensation plans, and more.