Whether the company is about to embark on an initial public offering, a SPAC merger, or an M&A deal (either as a buyer or seller), there are multiple phases and considerations to tackle. The work ahead for a growth opportunity or divestiture is not just about the transaction itself. The company must prepare for the event, get through it and then become accustomed to operating as the “new” company on the other side.
For instance, when going public, companies put a lot of resources and effort into thinking about their valuation, impressing investors, and preparing their S-1, but they also need to think about “Day 2,” the time after the IPO when the company will have to act like a publicly traded company. From being able to meet the nonstop, deadline-oriented flow of SEC filings to gearing up for the first year of Sarbanes-Oxley compliance, the company will face added scrutiny and expectations.
Companies considering the non-traditional IPO route, such as by being acquired by a special purpose acquisition company (SPAC), can turn to RoseRyan to become “public company ready” ahead of time. At a minimum, a company would need to have audited GAAP-based financial statements.
RoseRyan consultants have helped companies in similar situations—under a tight time frame, a SPAC deal often requires a team effort to address neglected technical accounting issues and account reconciliations, firm up internal controls over financial reporting, and assess other critical areas such as the IT environment.