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IPO readiness IPO readiness

An initial public offering (IPO) is a significant event in the life cycle of a company and a key liquidity event consideration. Embarking on an IPO calls for strategic planning and sound advice, and understanding of the market to address potential risks. It may improve your company’s financial strength and opportunities for growth, but it may introduce a number of management, financial, and process-related challenges. A public offering provides an opportunity to examine your company’s internal operations, reporting processes, and culture.

As you evaluate whether an IPO is the right strategic option, consider the following:

Advantages of an IPO Disadvantages of an IPO
  • Increased access to capital for future growth and expansion
  • Improved financial status with increased equity base
  • Attract and retain talent through equity participation
  • Improved credibility with business partners
  • Increased market profile
  • Increased scrutiny and accountability
  • Increased costs
  • Increased demands on time and resources
  • Reduced flexibility in decision making

KPMG’s IPO readiness team provides a wide range of services to assist with your public offering or alternative
strategies. We know the amount of project management and specialist assistance required through an IPO process. Let us help you prepare for and transition from your current primary accounting, financial reporting and management state to a future state required by both regulators and the market.

Preparing for the offering, includes:

  • Evaluate systems and processes to identify operational gaps
  • Create a robust business planning and analysis function
  • Have auditor’s subject financial statements to public company accounting and reporting standards
  • Evaluate corporate structure changes and taxation implications
  • Prepare Management’s Discussion & Analysis (MD&A)
  • Put employment agreements and equity-oriented arrangements in place
  • Affirm or renew key customer/supplier arrangements

The scale and support you need

Our Bermuda-based group, combined with our global capital markets teams in Toronto, New York and London, have the knowledge and experience to assist you in key markets on every step of your journey to IPO. We perform a thorough IPO readiness assessment, which includes a gap analysis and provides actionable recommendations to support the IPO process efficiently and cost effectively.

Our services are scalable, so we can adapt our level of effort to the extent you need us to supplement your team. Our team includes partners and senior team members who have assisted companies in meeting the challenges involved in taking a company public, bringing together the combined knowledge of our advisory disciplines and our reinsurance sector experience.

We have assisted with the development of risk and governance frameworks, providing internal audit services, preparing for SOX 404(a)/404(b)/302, as well as having planned for and supported businesses at various stages through the IPO process. Additionally, we have invested in the IPO readiness services market and believe we have cemented our place as the premier provider of services to companies in this niche sector.

An IPO preparation process typically takes between six and 24 months depending upon the size of the entity. During the process from planning to the initial listing, there are a number of strategic decisions that have to be made and criteria that must be satisfied. Many of the most time consuming aspects of the IPO process relate to internal audit, corporate governance, and infrastructure build. All areas we have and are currently assisting other companies with as they progress toward IPO.

What KPMG can provide is a structured phase-by-phase approach to get you where you need to be. We can work with you through every stage of your lifecycle to make sure that when the time comes, you are well placed to make the IPO process as quick and painless as possible.