INSIGHT

What’s an ideal timeline for an IPO?

Will Tanem • January 29, 2025

Services: Technical Accounting, IPO Readiness

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If your company is considering going public, you might be wondering how long the IPO process will take.  

Completing the transition from private to public status involves an intricate web of strategic initiatives, processes, audits and paperwork. All of these elements can take quite a bit of time to complete at a high level.   

Today, we will demystify the IPO timeline and walk you through what to expect as you prepare your business (and your team) for this exciting next step.  

What is an IPO timeline?

Going public through an initial public offering (IPO) is a significant milestone for any company, opening up new opportunities for growth and access to capital. However, the IPO process is complex and requires extensive planning and preparation, underscoring the need for a well-structured and realistic timeline.  

The IPO timeline refers to the sequence of events and activities leading up to a company’s public debut. This timeline typically spans up to 24 months, encompassing everything from initial strategic planning to financial preparation and audits to ringing the bell on listing day. 

Each step on the timeline requires careful planning and advice from seasoned experts across various domains, including IPO Advisory, SEC compliance, technical accounting, HR consulting, transaction advisory, corporate tax, business valuation services and risk assurance. At BPM, our Technical Accounting & IPO Readiness Team brings together well-versed advisors from these critical areas, working closely with companies to navigate challenges, minimize risks, and build a timeline that is tailored to your unique IPO journey from all angles. 

Understanding and effectively managing this timeline is crucial for a successful public offering. 

Proper planning and preparation are vital for several key reasons:  

• Regulatory compliance: Companies must meet stringent SEC filing and disclosure requirements and prepare extensive documentation to go public. 
• Financial reporting readiness: To meet public company reporting standards, companies often must upgrade their financial reporting systems and processes. 
• Operational adjustments: Transitioning from private to public status often requires significant changes to how a company functions to improve efficiency and scalability – from organizational structure to process management to significant overhaul of technology and IT infrastructure 
• Investor relations: Companies must develop comprehensive investor relations strategies to communicate effectively with potential investors and prepare for increased scrutiny from investors and analysts. 

BPM’s approach to guiding companies through the IPO readiness process is driven by these key objectives. Our expertise in technical accounting, SEC compliance, and operational transitions ensures companies can effectively address these requirements. With an interdisciplinary focus, our team offers technical knowledge, industry insight and a trusted partnership approach to help companies navigate the complexities of the IPO process, derived from our past experience with taking companies public. 

Detailed IPO timeline breakdown and key steps to IPO readiness

An IPO timeline is not a one size fits all for companies depending on their current stage of readiness. If the IPO process can take a couple of months, or even a couple of years, what can your company do to ready itself for the transition?  

This comprehensive timeline breaks down the key stages of the IPO process, helping break down what to expect and how to best prepare for each phase. 

18-24 months before IPO – IPO Assessment Phase 

At this early stage, companies lay the groundwork for their public debut. Business leaders buy in to the goal of entering the public markets, assessing the readiness of the organization and understand the general steps necessary to align operations with public company standards before jumping into the specifics. By the end of this phase, companies create a detailed work plan for IPO readiness. 

Key activities include: 

• Evaluating the need for third-party advisors, including IPO advisory 
• Performing a comprehensive IPO readiness assessment to identify gaps in resources, financial reporting, internal controls, technology and corporate governance 
• Determining filer status and evaluating current readiness for PCAOB audits 

A significant challenge during this stage is identifying specific readiness gaps across various aspects of the business. To address this, companies conduct a comprehensive readiness assessment to gain an objective view of areas needing improvement and gaps to be closed. 

BPM’s Role:

Bringing in specialized knowledge in key areas, BPM’s advisors conduct a detailed readiness assessment of your company’s current operations, benchmarking them against public company standards to develop a tailored roadmap. Identifying important gaps to address prior to the public transition necessitates evaluating various facets of operations and financial reporting, such as SEC filing requirements, PCAOB audit readiness, internal controls, technology, IT infrastructure, people, and governance. We also support leadership in assembling a broader IPO team with the right mix of internal talent and external advisors. 

6-18 months before IPO – IPO Readiness Phase 

With an understanding of specific areas requiring uplift, the focus now shifts to implementing the IPO readiness roadmap that was tailored during the IPO Assessment Phase by upgrading processes, implementing automation and software solutions, hiring personnel and closing other gaps identified to meet public company standards. This phase involves significant operational changes and the engagement of strategic external partners. Thorough preparation within the organization paves the way for formal IPO preparations to begin.  

Key activities include: 

• Uplifting private to public company financial reporting 
• Quarterization of financial statements 
• Performing technical accounting assessments for complex transactions 
• Implementing new accounting standards 
• Accelerating month- and quarter-end close processes 
• Implementing a Committee of Sponsoring Organizations (COSO) framework  
• Building a strong executive team with public company experience 
• Formation of the IPO Working Group consisting of bankers, securities counsel, auditors, accounting advisors, and underwriters. 

Often, key finance and accounting personnel find this part of the IPO process tedious due to challenges with bandwidth and expertise, as they must balance their own day-to-day responsibilities with managing the work of external auditors, consultants and other third parties. While external advisors can assist, this is typically when a company should also consider hiring key project management personnel in-house to assist with the various workstreams. This allows these core business leaders to keep various workstreams in the IPO process on track without sacrificing daily operations. 

BPM’s Role:

BPM’s advisors provide comprehensive support to help cross significant hurdles that require specialized assistance, including uplifting financial reporting to reach public company standards, supporting in-house accounting teams with technical and operational projects and bolstering internal controls. We guide companies through operational changes and offer expertise to seamlessly integrate best practices into upgraded systems. 

1-6 months before IPO – IPO Execution Phase 

As we approach the final stages of the IPO journey, the focus intensifies on navigating the complex regulatory landscape ahead, preparing for life as a public company. During this phase, companies enter the core of the regulatory process while preparing for intense investor scrutiny. Businesses undergo extensive review from the SEC while leaders refine the company’s story for potential investors. During this critical phase, companies also develop their equity story and begin to involve more workstreams and stakeholders, requiring intensive coordination. 

Key activities include: 

• Finalizing the offering structure 
• Conducting and finalizing due diligence 
• Officially engaging lead underwriters 
• Enhancing corporate governance structures and recruit board members 
• Determining a target offering and closing date, including key filling dates. 
• Engaging a technology-based printing service  
• Preparing and submitting the initial confidential submission of S-1/F-1 under Form DRS 
• Navigating the SEC review process, including multiple rounds of comments and amendments 
• Coordinating with the IPO Working Group 
• Preparing roadshow presentations and materials 
• IPO pricing and effectiveness with the SEC 

In the months leading up to an IPO, companies face significant challenges with coordinating the efforts of an IPO working group while facing regulatory inquiry. Business leaders struggle with their expanded roles of project management, needing to ensure that communication between the company and its securities counsel, external auditors and third-party service providers  during this stage is efficient. Further complexity is added with needing to thoroughly address concerns from the SEC. 

To mitigate delays, companies should closely collaborate with its IPO Working Group, ensuring timely SEC responses. Additionally, delegating project management responsibilities allows key executives to focus on high-level, strategic tasks around the IPO, and bringing in interim support can help day-to-day operations continue seamlessly. By understanding and preparing for each stage of this final push, companies can navigate the complexities of going public more effectively, setting the foundation for a successful debut in the public markets.  

BPM’s Role:

BPM’s SEC compliance experts play a critical role in this phase, assisting with drafting S-1 filings and project management and coordination efforts with management, securities counsel, external auditors and third-party service providers on the SEC filing timeline and process through events leading up to effectiveness, including responding to SEC comment letters. Our proactive approach helps companies anticipate regulatory challenges and streamline the approvals process. With our expertise, we ensure that the most rigorous and time-consuming aspects of the SEC review process are managed effectively. BPM also provides interim operational support, allowing executives to focus on roadshow presentations and investor engagement while maintaining business continuity. 

During this crucial stage, BPM also serves as a project manager, facilitating collaboration among all parties involved in an IPO working group. Our expertise ensures efficient communication and alignment throughout the process. 

Create your IPO timeline with BPM

Taking your company public is an exciting yet complex process. From the initial stages of assessing company readiness to the final push toward listing day, each phase of the IPO timeline presents unique challenges and opportunities. Companies that invest time and resources in thorough preparation across all aspects of their business—from enhancing financial systems to developing a compelling equity story—are better positioned for a successful public debut.  

From the early stages of readiness assessment to a successful public listing and beyond, BPM’s IPO Readiness Team offers tailored guidance and technical expertise to help companies navigate every phase with confidence. With an interdisciplinary approach and a commitment to long-term success, BPM is your trusted partner in the journey to becoming a public company. 

Contact BPM today to learn how our IPO readiness services can help your company confidently enter the public markets.