Companies considering an IPO need to make sure they’re prepared before they act.
In its guide to going public in Canada, EY advises companies to act as if they were public for at least a year before listing on a stock exchange.
Companies that successfully transition to the stock exchange often spend two years or more preparing their administrative processes and infrastructure, recruiting executives, and upgrading financial reporting systems.
EY says business owners should ask themselves:
- Have you developed a formal, comprehensive written plan and timeline?
- Has your organization begun acting like a public company?
- Are you actively addressing the four functional phases of the IPO preparation process: due diligence, drafting, review by the appropriate provincial securities regulator, and marketing?
For more guidance on taking a company public, click here.