Stuff Your IPO Consultant Didn’t Tell You

IPO Consultant

Why Hiring An IPO Consultant Is Wise?

So, you want to go public.

We get it – the allure of joining the elite and exclusive class of companies that have the opportunity to become publicly traded is enticing and a feat very few have the opportunity to accomplish. It’s the proverbial big leagues!

The influx of capital from IPO can dramatically accelerate growth and expand existing market share. It’s an opportunity to attract more customers, reach new markets, and influence new decisions like added research & development or mergers and acquisitions. It can help attract new talent and get you in the door with new vendors and suppliers. The board, executives, and employees are stoked. 

But before you start picking your walkout song, consider a few things – while it puts you in a whole new playing field competitively, it also puts you in a whole new regulatory playing field. 

…And silence fell over the crowd. Ok, not quite that dramatic. But an IPO, while exciting, brings with it a lot of added responsibility and costs. According to Inc., companies can expect to spend roughly $2mil on preparing for and executing the IPO process. You will need to worry about the new governance of the Securities and Exchange Commission (SEC) and requirements of both Sarbanes-Oxley (SOX) and the Securities and Exchange Act of 1934. Your organization will be required to increase transparency with investors and the public. 

This is why it’s important to have a good IPO Consultant.

As we said, it’s the big leagues. There will be added competition, admiration, and scrutiny, and it won’t be exclusively at the business level. All eyes are on your next moves, both from a customer and regulatory perspective. With the new governance, oversight comes new requirements for enhanced security standards across your information security environment and the means to prove it via comprehensive audits. Not only can poor security posture result in hefty fines, but thanks to your new transparency requirements, it can influence public perception as well. 

And then there’s your team of employees. Imagine playing a game you don’t know the rules to. Sure, they’re capable enough to figure it out, but how much performance and efficiency will be lost in the process of their re-focus, and how much-added pressure will it create for your star security players? 

What Your IPO Consultant May Have Missed

At IDMWORKS, we understand the importance of protecting that IPO investment by safeguarding your organization’s most important and intangible asset: its reputation. We do this by putting effective controls around your customers’ data, who are the fans who got you here in the first place. But it’s not solely important to have those controls in place for compliance or brand awareness purposes. To be ready for the opportunity for public growth, such as investments or mergers/acquisitions, your IT environment must be centralized and ready to scale. Our coaches help establish a strategy that capitalizes on automation for growth but ensures your entire environment is centralized for improved visibility throughout the changes. 

And with new competition comes new market demands. To continue to compete at an exceptional level, it will be more important than ever to mitigate time inefficiencies throughout the entire organization. Slow employee onboarding sacrifices valuable resources. Inadequate access and password management could pose risk to critical access for decision making. Manual certification campaigns are not only incredibly time-consuming but also a waste of talent. With increased business-level pressure, your IT organization must adapt to support and enable the new pace of business operations. 

And to maintain top talent, it’s important to empower your employees with roles that capitalize on their skill sets rather than bogging them down with monotonous tasks. 

We can prepare for ALL of that. 

Transitioning to a publicly-traded company is one of the most exciting milestones your organization will undertake, and it should be celebrated and enjoyed. Let the all-star consultants of IDMWORKS help you build an IAM strategy to prepare for IPO, protect your investment once you step onto the field, be ready to scale for a grand slam, and protect that winning streak with processes that will enhance efficiencies into the future.