Strategy to be followed during the pre-IPO process: How Boards can help?
Every publicly listed company's board of directors must be effective. The ideal board of directors consists of a diverse group of directors with a wide range of backgrounds who bring complementary skills and work well together. The IPO process creates new stakeholders who have new and higher expectations; therefore, the board of directors must prioritise each step and mainly finance function because it will assist them in determining whether a company's debut as a public company is successful.
However, the question arises. What can corporate boards do to get the finance department ready for the pre-IPO? The Boards of Directors should significantly expand their finance departments, hiring key personnel important for the process. They must examine management's plan to develop budgeting, financial planning, and analysis capabilities, as well as identify various resources from which they can obtain financial aid and keep books that meet SEC reporting deadlines. It is not enough to simply fill out the implementation plan; it is also critical to have the right strategy with the right person to execute it.
