As a private company begins its journey toward becoming public — whether through an IPO, SPAC merger, or direct listing — it must navigate a range of new expectations from regulators, investors, and other market participants. One of the most significant areas of transformation is the company’s financial statements. Financial reporting for a private company doesn’t meet the standards in the public markets. A deliberate and comprehensive “uplift” is required.
At CBIZ Advisory, we work closely with finance and accounting leaders to guide this transition. This article outlines the key areas where private company financial statements typically need enhancement and how our team supports a smooth and successful uplift.
Key Financial Reporting Areas That Require Uplift
Enhanced Disclosures
Public company financials must include far more extensive disclosures than private company reports. These include detailed footnotes on accounting policies, related-party transactions, risk factors, and commitments and contingencies. Disclosures must also reflect consistency, clarity, and completeness across all periods presented.
CBIZ Advisory can help by:
- Drafting or reviewing footnote disclosures for completeness and SEC compliance
- Benchmarking disclosures against public company peers
- Supporting management with MD&A preparation
Segment Reporting (ASC 280)
Segment disclosures are often overlooked in private company reporting but are critical for public companies. Determining operating segments and reporting units, as well as reconciling financials, requires alignment among finance, operations, and executive leadership.
CBIZ Advisory can help by:
- Assisting with segment identification and aggregation analysis
- Drafting segment footnote disclosures
- Aligning internal reporting structures with segment guidance
Preferred Stock Classification (ASC 480)
Preferred stock issued by private companies often includes contingent redemption rights or other features that could require temporary equity classification under U.S. GAAP. This is a frequent adjustment during IPO preparation.
CBIZ Advisory can help by:
- Evaluating preferred stock terms and classification
- Assisting with restatement of prior period balances
- Documenting technical accounting conclusions for auditors and regulators
Earnings Per Share (EPS) (ASC 260)
Private companies are generally not required to present EPS, but it becomes mandatory for companies once they go public. Calculating basic and diluted EPS requires careful analysis of the capital structure, including options, warrants, and convertible instruments.
CBIZ Advisory can help by:
- Identifying potentially dilutive instruments
- Building EPS models in accordance with ASC 260
- Supporting audit-ready documentation
Interim Reporting (Form 10-Q / Regulation S-X)
Most private companies prepare annual financial statements. Public companies must produce quarterly results within a limited time to close and review.
CBIZ Advisory can help by:
- Establishing a quarterly close calendar and cadence
- Creating interim financial statement templates
- Helping teams adapt to the accelerated timelines
Stock Split Analysis
Stock splits — especially forward or reverse splits leading up to a listing — can impact EPS, share counts, and comparability across periods. Ensuring that appropriate accounting and retrospective presentation are in place is essential for compliance and investor clarity.
CBIZ Advisory can help by:
- Advising on forward/reverse stock split mechanics
- Retrospectively adjusting historical EPS and share count data throughout the document
- Aligning split analysis with auditor and legal expectations
Carve-Out and Pro Forma Financials
In some cases, financial statements must reflect only a portion of the business being taken public or include pro forma adjustments for recent acquisitions or changes in capital structure.
CBIZ Advisory can help by:
- Preparing carve-out financials and standalone entity reporting
- Assisting with pro forma financials in accordance with Regulation S-X Article 11
- Coordinating with auditors and legal teams to ensure alignment
Non-GAAP Measures
Public companies frequently supplement GAAP results with non-GAAP measures to better communicate performance. However, these must be carefully constructed and clearly reconciled to avoid scrutiny by the SEC.
CBIZ can help by:
- Identifying appropriate and supportable non-GAAP metrics
- Drafting reconciliations and ensuring Regulation G/F compliance
- Advising on consistent presentation and disclosure best practices
Beyond Financials: Preparing for Scrutiny
The uplift process isn’t just about technical compliance—it’s about preparing for a new level of scrutiny. Public company financials are read by investors, analysts, and regulators. The bar for transparency, accuracy, and timeliness is significantly higher.
At CBIZ Advisory, we understand the bigger picture. We help private companies move beyond “getting the numbers right” to telling a compelling financial story that holds up under public market pressure.
How CBIZ Advisory Supports Your Public Company Journey
We partner with CFOs, controllers, and their teams to ensure financial readiness through services such as:
- IPO and Public Readiness Assessments
- Accounting Policy Review and Uplift Plans
- Technical Accounting Support and Memo Preparation
- Financial Statement Drafting and Disclosure Review
- Process Documentation and Controls Readiness
- Interim/Quarterly Close Acceleration
Whether you’re a high-growth tech company, a mature family business, or a PE-backed company, we tailor our approach to your specific needs and timeline. We bring cross-functional expertise — accounting, reporting, compliance, and operations — to prepare you for life as a public company.
Ready to Elevate Your Financial Reporting?
CBIZ Advisory is here to help. Reach out to learn how we can support your financial statement uplift and broader IPO readiness. Connect with us today.
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