IPO Readiness Diagnostic

Thorough preparation is often the best way to increase the value of an IPO. The business’s leaders need to ask themselves “Are we really ready for what lies ahead” and “Where are the potential gaps in our plan” if the IPO is to realize maximum value 6-12 months later. For most executives, it’s doubly difficult to answer such questions given that few of them have contemplated an IPO when the questions come up.

With that challenge in mind, BCG has created a tool for assessing IPO readiness. Our proprietary IPO Readiness Diagnostic reviews and benchmarks a company’s readiness for the IPO process in light of key investors’ criteria. Strategy is one of those criteria; the tool helps ensure that it is consistent and credible, and that there is a coherent equity story. The tool gauges the financials – not just the regular reporting but the budgeting and forecasting processes, the “cleaned up” balance sheet, and more. The IPO Readiness Diagnostic also benchmarks organization functions that are relevant to the IPO, such as the corporate communications and investor relations teams.

WHAT IS IT?

  • A diagnostic tool to assess IPO readiness as part of the overall IPO assessment
  • A means of focusing on investors’ screen criteria: strategy, financial performance, organizational structure, and capabilities
  • A way to provide a capital market perspective