2018 has been a momentous year for IPOs in the United States.
To date, 211 companies filed IPOs, generating $44.8 billion in proceeds, according to Renaissance Capital. This represents a 34.2 percent increase from 2017, where 196 IPOs accounted for $35.5 billion in proceeds.
If you’re a corporate controller at a company heading down the path to an IPO, there’s a lot to prepare. We put together a few handy tips for taking the next step.
“It’s certainly fair to say that it was a roller-coaster ride—sometimes hour by hour — and it took a lot of work and dedication from a lot of different people,” said Scott Paterniani, CPA, vice president and corporate controller at Wheels Up. In 2014, Paterniani was a corporate controller at Borderfree Inc. when the company went public.
Having assisted several clients through the IPO process while working at Grant Thornton helped Paterniani during his first IPO as a corporate controller. Hired by Borderfree in February 2013, he played a key role throughout the e-commerce technology company’s IPO journey.
“[That previous IPO experience] with former clients allowed me to go into Borderfree confident in knowing what to expect: the financial reporting and internal control requirements; the challenges of SEC reporting; scaling an accounting and financial reporting team to meet the requirements of an SEC filer; the ups and downs of the IPO process; the cadence of the deal; managing different personalities, both internally and externally; and providing guidance and support to other finance functions and other departments throughout the project,” Paterniani said.
He also recommended making sure your financial reporting systems can replicate statements or schedules that were included in the SEC Form S-1 so that you can provide comparable data as you move forward, at least for the first year.
“Because you do not have a track record yet, the only thing investors have to compare you against is what you told them in the S-1,” Day added.
“Additionally, your goal as controller should be to prepare every one of your team members to take on more responsibility and move up the ranks at your company, or prepare them to take on larger roles outside of the company when they are ready to move on,” he added.
Get along with your team. “You will be spending hours, days, weeks, and months together. Be kind and respectful. Realize that everyone has a breaking point—don’t push them to theirs,” said Cary Morgan, corporate controller at Utah Tank & Trailer, a West Valley, Utah-based company that specializes in tanks and equipment, who was vice president corporate controller at Chordiant Software Inc. in Cupertino, Calif. when it went public in February 2000.
If you and your team are gearing up for the challenge of preparing for an IPO, download our Controller’s Guide to IPO Readiness: Critical Considerations for You and Your Team.
This article appeared first on Going Concern.