IPO Readiness

Our financial and business process consultants have deep expertise in SOX and internal controls, technical accounting, SEC reporting, systems evaluations and implementations, business process re-engineering, tax consulting, and much more. We also have longstanding relationships with all the major auditing firms―and many of our team members came from the Big Four. We speak their language and can work effectively with them to help you achieve your goals.

It’s also true what they say about big ships turning slowly. This applies to our larger competitors, which means you may wait months just to be accepted as their client. Armanino provides the same level of expertise without the bureaucracy, so if you need to act fast, we can start your IPO process in a matter of days. Throughout the process, we’ll help you make the necessary changes to your organization as quickly as possible, so you can time the market correctly.

We help companies complete each of the key milestones along the IPO path, including:

• Preparation of audited financials: We help you prepare the two to three years of audited financials required by the Securities and Exchange Commission (SEC).
• Establishment of your plan for SOX and FCPA compliance: Our experts work with you to ensure that on day one of going public, you meet all guidelines and regulations for the Sarbanes-Oxley Act and the Foreign Corrupt Practices Act.
• Drafting of your Form S-1: The lengthy Form S-1 registration statement is the first publicly available look at your business for investors. It provides a detailed view, not only of your financials, but of your risk factors, strategy and vision for the future. We work closely with you to assemble the required information and draft a clear, complete narrative of your entire business.
• Delivery of tax provision consulting for Form S-1 and filing it with the SEC: For private companies, income tax provision is an annual occurrence. For public companies, CFOs face a time-consuming process of filing returns quarterly. As your company prepares to file, we ensure your provision process is streamlined to meet reporting requirements and avoid the worse-case scenario―a restatement of a prior financial report. We can also review uncertain tax positions pre-IPO so you aren’t faced with a big fluctuation in your effective tax rate, as provisions are typically 30-40% of a company’s net income before tax.
• Assessment of non-income tax areas: While provision is a key component to IPO planning, companies should also ensure that they’ve taken a full inventory of non-income tax areas prior to going public. These areas include sales tax, real property tax, stock transfer taxes, transfer pricing and intercompany agreements, and R&D tax credits.
• Updating of financial statements and response to SEC comments: We update your quarterly financial statements and quickly address any SEC comments on the Form S-1 or your submitted financials, so you can avoid having to file costly, time-consuming revisions.
• Preparation of auditor’s comfort letter: Obtaining a comfort letter from your audit firm is a market standard when going public. This documentation helps confirm the accuracy of your auditor’s processes and procedures performed to arrive at their audit opinion; it’s also used to validate the financial statements as reported in your Form S-1.
• Assistance with road shows: From compiling an accurate, effective deck to walking you through mock presentations, we help you prepare your all-important pitch to investors.
• Performance of your 10-K annual audit: The IPO is just the beginning of your life as a public company. We help ensure that you hit the ground running and meet the critical financial reporting deadlines that occur shortly after your IPO date.
• IPO Valuation: We provide assistance with any accounting and regulatory issues regarding pre-IPO and IPO valuations, including 409A analyses, deferred compensation expense calculations and other related services.
• IPO Readiness Assessment: Our IPO Readiness Assessment is a structured way of analyzing and reporting on your company’s readiness for going public. It’s a good starting point for your IPO process preparations and includes key areas such as:
  • Financial reporting procedures, technology assessment and internal controls
  • Corporate structure and tax considerations

  • Financial track record

  • Corporate governance

The efficient assessment process typically takes three to six weeks from start to finish. The output? A detailed one- to two-year roadmap of what you need to address to operate as a public company.