Pre-IPO Due Diligence Checklist for Growing Businesses
12 February, 2021Organizational charts. Strategic plans. Financial records. Employee data. Marketing plans. Real estate and franchise agreements. Tax records and licenses.
The list of items you need to examine and analyze for an IPO (Initial Public Offering) is long and complex - and critical to making an informed decision about going public. The due diligence process requires examination, evaluation and analysis of every facet of the company’s operations. Is the company’s performance as good as they claim? Are there underdeveloped assets or hidden liabilities? How does the company compare to its competition?
Properly executed, your pre-IPO due diligence will accurately establish the value of the company and support its projected share value - or provide the basis for reassessing that value.
Customized Content in a Normative Structure
The content of an IPO Due Diligence brief varies based on the company under review. However, the structure of the filing and the points it must address are similar:
- Board & Employee Information
- Company Organizational Charts
- Financial Data
- License and Tax Items
- Products, Services, Patents & Trademarks
- Property-related Information
- Vendor Agreements & Customer Policies
Process Completion
ShareVault’s Sample Due Diligence Checklist has been utilized successfully by dozens of companies. By using ShareVault’s Pre-IPO Due Diligence checklist, you can ensure your brief is complete.
Ease of Use
Simply upload the ShareVault Due Diligence Checklist to a ShareVault virtual data room. The document will automatically create a Table of Contents with folders (technically, “tags” in ShareVault) for each item on the list. Without entering any data, your IPO due diligence process is already organized.
To speed the review and analysis process, ShareVault features accelerated document review functionality. Team members can access documents in a ShareVault secure virtual room from any device and any web browser with the proper viewing permissions, without the need of your company’s IT department involvement.
Collaborative Effort
Lawyers, accountants, licensing and real estate professionals, investment bankers and other parties may play a part in your Pre-IPO Due Diligence brief preparation. With ShareVault, collaborations are easy.
ShareVault due diligence documents are accessible to any member of the team, anytime, from anywhere. Since many of the due diligence documents are confidential, access to documents is strictly controlled by a set of permissions. Team members can store the Checklist and documents in a ShareVault secure virtual data room.
Conclusion
The value of a great IPO due diligence team is their ability to examine, evaluate and analyze. ShareVault supports your effort with a Pre-IPO Due Diligence Checklist that ensures your brief is comprehensive, a virtual data room and permissions to ensure security, and document processing functionality that speeds the entire process.
Learn more: “What to Know Before an IPO”
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