Going public is a landmark achievement for any business. Beyond prestige, an initial public offering (IPO) provides access to substantial capital, fueling growth and expansion. However, the journey from private to public is complex, requiring meticulous planning, flawless execution, robust systems, strategic tools, and unwavering focus on regulatory compliance.
According to EY Global IPO Trends 2024, “US led by IPO proceeds, while India led in IPO volume as global markets show renewed investor confidence.” And that, “the global IPO market is poised for a strong 2025, driven by increasingly accommodative monetary policies and supportive market conditions.”
Whether you’re considering an IPO within the next two to three years or laying a foundation for the future, there is a strong need to have a strategic roadmap. And, leveraging the right ERP solution becomes paramount. That is where organizations need an indispensable cloud-based solution like NetSuite, empowering them to streamline operations, ensure compliance, and present themselves as efficient and scalable entities to potential investors.
Here’s a step-by-step guide to preparing your company for a successful IPO and how NetSuite can simplify the process.
Questions to Ask Before Pursuing a Public Offering
Going public is a transformative milestone for any company, but of course, not a decision to be taken lightly. Before starting on this journey, the decision makers must ask oneself questions including:
• Why go public now?
Check if the timing matches your business goals, market conditions, and investor expectations.
• Is your company prepared?
Review your financial fitness, operational stability, and scalability.
• Do you have the right team and technology?
Identify gaps in your leadership team and tech infrastructure that need to be addressed.
• What are the risks?
Analyze potential challenges, such as increased regulatory scrutiny, pressure to meet quarterly expectations, and market volatility.
• How will you maintain shareholder confidence?
Develop a strategy for ongoing investor relations and transparent communications.
These form the basis for a successful IPO strategy. Answering these will guide your preparations and help you navigate through what is often viewed as a particularly complex process.
Now, let’s check out why cloud-based ERP like NetSuite is essential for public offerings.
7 Steps to Prepare for a Successful IPO with NetSuite ERP
1. Get Your Finances in Order
A comprehensive financial foundation is critical for IPO readiness. Companies need systems capable of providing three years of audited financial data, managing modern accounting challenges, and demonstrating solid financial metrics like debt-to-equity ratios and predictable earnings streams.
NetSuite ERP equips businesses with the tools to:
• Streamline IPO compliance with NetSuite ERP
• Automate revenue recognition in compliance with standards like ASC 606.
• Streamline processes for revenue, headcount, and expenditure management.
• Provide real-time access to critical financial data, enabling informed decision-making.
2. Prepare for Rigorous Financial Reporting
Efficient financial reporting is essential during the IPO process. Financial records must be accurate, consistent, and compliant with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). A robust financial reporting system is critical to gaining investor trust. NetSuite’s advanced analytics and automation eliminate manual reconciliations, enhance transparency, and ensure compliance with SEC and other regulatory requirements. NetSuite financial reporting capabilities make the IPO process easier and smoother.
Key features include:
• Automated reporting on KPIs.
• Role-based dashboards with drill-down capabilities.
• Integrated global consolidation for complex organizational structures.
3. Establish Good Corporate Governance
Effective corporate governance is non-negotiable for public companies. Investors and regulators demand consistent and transparent practices.
NetSuite’s Governance, Risk, and Compliance (GRC) module ensures:
• Automated and tailored Suite custom preventative and detective controls using workflows, SuiteScripts, saved search alerts and custom fields and secure financial systems.
• An always-on audit trail, built-in analytics, access logs, and workflow management. Full audit trails for regulatory compliance with various supporting independent reports and certificates including SOC 1, SOC 2, ISO 27001, ISO 27018, PCI-DSS, PA-DSS, TX-RAMP, EU Cloud CoC, and more.
• Role-based access to safeguard sensitive data, including credit card and personally identifiable information.
• Advanced security monitoring with options to block unauthorized attempts to access data centers, with all unauthorized connection attempts logged and thoroughly investigated.
4. Build a Persuasive Equity Story
A compelling equity story is vital to attract investors. It should combine qualitative and quantitative elements, showcasing the company’s performance, growth strategy, and market opportunity.
With NetSuite, CFOs can:
• Access real-time performance metrics.
• Generate data-driven insights to bolster the equity narrative.
• Share visual dashboards, KPIs and reports to engage investors effectively.
5. Proactive Investor Relations and Corporate Communications
A robust investor relations (IR) function builds trust and maintains transparency with stakeholders. NetSuite supports IR teams with:
• Centralized access to financial metrics and reports.
• Transparent reporting processes to enhance credibility.
• Scalable cloud-infrastructure for public-market scrutiny.
6. Develop Risk Management Capabilities
Going public introduces significant risks. NetSuite helps identify and mitigate these risks by providing:
• Real-time KPIs and, automated and rule-based alerts to identify risks before they lead to any damage.
• AI-powered advanced tools to forecast and respond to potential challenges.
• Enhanced cybersecurity and data governance.
• Cloud-based software allows for easy upgrades and assurance that regular patches will protect against vulnerability.
• Customizable and auditable workflows, permission-based access, and many more that help public companies to reduce risk through compliance.
7. Invest in the Right Technology Stack
A strong technology foundation is crucial for a seamless transition to public markets. NetSuite ERP offers:
• Scalable solutions for financial reporting and compliance.
• Advanced data governance and cybersecurity measures.
• Finance automation to manage expanded responsibilities without additional headcount.
Partner with the Experts for IPO Success
Preparing for an IPO is no small feat, but with the right tools and guidance, your company can achieve its goals. As the market embraces this new era of IPOs, the synergy between NetSuite expertise and strategic financial planning becomes increasingly valuable. Companies with access to top NetSuite talent and the right support are better positioned to achieve public success.
At Jobin & Jismi, we specialize in NetSuite implementation, customization, integration, and support, helping businesses leverage their capabilities for IPO readiness and beyond. Our tailored NetSuite solutions are designed to address every aspect of the IPO process, from financial readiness to compliance and beyond. With our partnership, you can focus on driving your business forward while we take care of the technical details.
Wrapping Up
Launching an IPO is a monumental step that demands precision, transparency, and scalability. NetSuite's robust features make it an essential asset in this journey, ensuring your company stands out as a reliable and growth-oriented investment opportunity. Partner with Jobin & Jismi to unlock the full potential of NetSuite and achieve IPO success with confidence.
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