As the IPO market begins to show signs of reawakening, CFOs and controllers at privately held companies are taking a fresh look at the steps required to prepare for a successful capital raise or exit in late 2025 or 2026. While capital markets have been volatile in recent periods, a growing number of companies are using this time to strengthen internal operations, align with public company expectations, and build financial and operational maturity.
At CBIZ Advisory, we help companies build sustainable finance, accounting, and systems infrastructure to prepare for an IPO or other liquidity event. This article outlines key areas where financial leaders can begin preparing today, ensuring optionality and readiness when the market timing is right.
Establish the Right Internal and External Team
Preparing for a public company transition requires a coordinated, multidisciplinary team. Internally, CFOs and controllers should assess their accounting and finance team’s capabilities and capacity. Depending on the organization’s maturity, this may require hiring experienced financial reporting, technical accounting, or SOX readiness professionals.
Externally, consider bringing in legal counsel, auditors, valuation specialists, investor relations consultants, and technical accounting advisors. Selecting the right external partners with extensive IPO experience will provide management with the necessary tools to anticipate common challenges and streamline the path to readiness.
Key Considerations:
- Evaluate whether current team members have public company experience.
- Identify gaps in reporting, forecasting, and internal controls.
- Engage external advisors 12–18 months before a potential filing (even before building out the internal team).
Strengthen Financial Reporting and Internal Controls
A robust financial reporting environment is the foundation of IPO readiness. Monthly close processes should be reliable and efficient, with a target of five to seven business days. Financial statements should be audit-ready, with supporting documentation for key judgments and estimates.
Companies should also begin implementing internal controls that align with Sarbanes-Oxley (SOX) standards. While full SOX compliance isn’t required pre-IPO, management will be required to sign certifications as part of the S-1 filing under Section 302 of SOX, attesting to the accuracy of financial reporting and effectiveness of disclosure controls. As a result, many companies undertake “SOX-light” readiness programs before filing, to help identify and remediate control gaps early. Establishing a SOX readiness roadmap supports investor confidence and reduces execution risk once public.
Key Considerations:
- Perform a mock close or IPO dry run to identify reporting gaps.
- Document accounting policies under U.S. GAAP, including ASC 606, 842, and 718.
- Develop and test internal control procedures.
Assess Technology Infrastructure and Data Governance
As highlighted in recent CBIZ Advisory insights on data architecture and system scalability, companies preparing for the public market must ensure their systems can support growth and provide timely information for transparency. Companies still relying on manual reporting or disparate systems should assess whether upgrading all or a portion of the finance and accounting ecosystem is necessary.
Further, public companies are expected to maintain centralized, reliable data that supports financial disclosures and business performance metrics.
Key Considerations:
- Evaluate current ERP, CRM, and FP&A tools for scalability.
- Ensure systems that support key processes such as quote-to-cash, procure-to-pay, inventory management, equity administration, payroll, and taxes that allow for timely and accurate reporting.
- Implement data governance frameworks.
- Prepare for investor and regulatory scrutiny of data consistency.
Craft and Support a Clear Company Narrative
Your company’s story is a core component of IPO marketing and investor communications. It should clearly communicate the company’s market opportunity, strategy, growth trajectory, and differentiation. Financial leaders must ensure this story is supported by clean, consistent data and KPIs that align with investor expectations.
This includes identifying appropriate GAAP and non-GAAP metrics, developing forward-looking financial models, and ensuring your internal systems can accurately track these measures.
Key Considerations:
- Identify, understand, and stress test key metrics in a volatile marketplace to understand trends.
- Align projections with market benchmarks and valuation drivers.
- Prepare a data-backed narrative to support the S-1 and roadshow.
Formalize Governance and Compensation Structures
Companies pursuing an IPO will need to meet specific governance and compensation requirements. This includes forming an audit committee, recruiting independent directors, and implementing appropriate compensation plans aligned with shareholder interests.
Executive compensation design, including long-term incentive plans, should be aligned with public company norms. These plans should be reviewed and benchmarked well before a public offering.
Key Considerations:
- Recruit independent directors with public company experience.
- Draft committee charters and governance policies.
- Align executive compensation with peer benchmarks and investor expectations.
Build Organizational Resilience for Public Company Life
Transitioning to a public company is a significant cultural and operational shift. Leaders must prepare the broader organization for the pace and transparency of life in the public eye. Expectations increase significantly, from investor calls and SEC reporting to quarterly earnings management.
IPO readiness includes more than financial readiness — it requires operational discipline and a public-company mindset across the business.
Key Considerations:
- Conduct IPO readiness workshops across functions.
- Educate leadership on public company responsibilities.
- Develop a 12- to 24-month roadmap with defined milestones.
Stress-Test Your Operating Model
Public companies are held to a higher standard regarding scalability, profitability, and operational discipline. CFOs and operations leaders should ask:
- Are our margins improving over time?
- Is the cost structure scalable as we grow?
- Are we identifying automation and efficiency opportunities?
- Do we understand the key drivers of profitability?
It may also be worth exploring whether certain expenses or investments should be front-loaded ahead of a transaction, while still private.
Conclusion
Planning Today for Strategic Optionality
A successful IPO or liquidity event requires years of planning, not months. The companies best positioned to take advantage of a reopening IPO market in late 2025 or 2026 will be those who use the current window to assess, plan, and act. Whether your company ultimately pursues a public offering, private equity investment, or strategic sale, the same foundational readiness applies.
At CBIZ Advisory, we help finance leaders evaluate IPO readiness, strengthen financial processes, implement scalable systems, and develop narratives that resonate with investors. Contact our team to learn more about how we can support your journey.
Because when the window opens, preparation will make all the difference.
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