Any company can go public. But doing so involves a long process and rigorous preparation. Holding an IPO brings a massive financial change for a company. And as much as it is a financial change, it is an equally big cultural change.
Interestingly, 2021 turned out to be a record-breaking year for IPOs globally. According to PwC, global IPO markets delivered 2682 IPOs[i] raising $608bn in 2021, with America being the dominant region. And that makes us bring another interesting piece of information to you. Since 2011, 63%[ii] of technology IPOs in the US are NetSuite customers.
So, why does a large number of companies holding IPOs trust NetSuite? What is it that the NetSuite Software helps businesses engineer a successful IPO? In this blog post, we will discuss how NetSuite prepares businesses for IPO success.
How NetSuite Prepares Businesses for IPO Success
For its IPO to be successful, a company requires one thing – the right people. However, success seems remote unless these people operate through the right platform to support the IPO process. NetSuite is ‘THE’ platform that supports fast-growing companies to be listed on a stock exchange due to the following reasons:
- NetSuite Helps You Build Solid Financial Reporting: The IPO process requires efficient and transparent production of financial statements. Not only should you replace manual reconciliations and data entry with automation but also ensure that reporting processes are transparent and supported by full audit trials. Also, it is important to have robust management reporting capabilities such as the ability to analyze past performance and forecast future financial performance. NetSuite provides robust reporting and analytics with automated reports around Key Performance Indicators (KPIs), role-based dashboards, and the ability to drill down by location, department, and subsidiaries. Thanks to NetSuite’s intuitive interface, which makes complex analytics easy even for inexperienced users. Next, the companies that are going public should have such a system in place that they are able to:
- Provide three years of audited financial data
- Provide solid debt-to-equity ratios, market capitalization, and predictable revenue streams
- Deal with modern accounting challenges such as valuation impairment, revenue recognition, and more
NetSuite provides the features and capabilities to navigate this complexity and equips businesses with the necessary controls to manage these processes and accommodate any future changes.
- NetSuite Addresses Your Legal Compliance & Regulations Requirements: Whether it is a startup or an established business, going public requires them to fulfill legal compliance and regulatory requirements, and go through financial scrutiny. For example, in the US, businesses must be aware of revenue recognition standards such as ASC 606 and compliances for digital payment such as PCI-DSS. NetSuite is equipped with features and tools to make them legally compliant, leverage automated tax filing, and use a state-of-the-art auditing platform to keep them prepared for the listing rules.
- NetSuite Helps You to Establish Corporate Governance: Governance plays an important role in the long-term success of a company. Investors and regulators alike demand business processes to be coordinated, transparent, and consistent. NetSuite has built-in Governance, Risk, and Compliance (GRC) capabilities that help businesses to have a solid reporting and auditing structure throughout the IPO process and beyond. Also, it is equally essential for the directors and C-level executives of businesses to understand their roles and responsibilities well and their relationships with one another, so that the much-needed trust and ownership are developed within their management.
- NetSuite Helps You With Data Security and System Reliability: For a startup holding an IPO, ensuring top-notch data safety is crucial. NetSuite helps them ensure world-class data security and reliability of the processes as the datacenters run by NetSuite are certified for PCI DSS and ISO 27001:2013 standards. Also, NetSuite modernizes your security operations center as it is externally audited to SOC 1 Type and SOC 2 Type 2. This helps businesses keep their sensitive data secure, including credit card and personally identifiable information.
The ride to IPO is bumpy. However, along with several significant steps that a business follows, supporting them with NetSuite ERP helps sail through the process smoothly.
If your business is experiencing bottlenecks to embark on the IPO journey, make it audit-ready with NetSuite.
Looking to make the most of NetSuite? Talk to us!
We are a NetSuite solution provider with experts on board who follow the best practices for NetSuite implementation, customization, and integration to help you achieve your goals. Feel free to drop us a line at email@example.com and we will take it from there.
Popular Blog Posts