A company preparing for an initial public offering subjects itself, its management, its financials, and its corporate history to a level of scrutiny that most private companies have never experienced. The prospectus verification process, the due diligence conducted by sponsor and underwriters, and the ongoing regulatory obligations that follow listing, each require a level of transparency and integrity that companies and their advisers need to be confident the organisation and its management can withstand.
Pre-IPO corporate integrity investigations are conducted before the listing process reaches the point at which adverse information would cause maximum damage: before the prospectus is published, before investor roadshows have created commitments, and before regulatory scrutiny of the management team has formally begun.
What Pre-IPO Investigation Covers
Management team integrity: background investigation of all proposed directors and senior managers who will be named in the prospectus, identifying any matters that may affect their fitness for public company directorship or that may surface during the listing process.
Corporate history: investigation of the company’s corporate history, including any associated entities, predecessor businesses, or historical matters that may not be reflected in the current corporate structure but that may be relevant to investors or regulators.
Material relationship assessment: assessment of the key customer, supplier, and investor relationships that are material to the company’s valuation, verifying that they are as described and that there are no undisclosed matters relevant to their sustainability.
Litigation and regulatory history: investigation of current and historical litigation, regulatory proceedings, and enforcement actions involving the company or its principals, identifying anything that has not been fully addressed in the disclosure process.
Preparing for an IPO and need pre-listing integrity investigation? Contact Bond Rees.
