After a tepid 2016 for new public stock listings, IPO volume has picked up slightly in 2017. But despite the recent underwhelming performances of newly-listed companies, an IPO is still a noteworthy and lucrative exit for private companies. <\/p>\r\n\r\n
Similar to an M&A event<\/a>, private companies considering an IPO need to be aware of a set of certain critical elements with regards to equity management. <\/p>\r\n\r\n Listed below are these critical elements and how Carta<\/a> helps companies during the due diligence process to be ready for the increased scrutiny of an IPO. <\/p>\r\n\r\n Cap Table: Equity Grants and Compensation<\/strong><\/p>\r\n\r\n It\u2019s all about the cap table. Cap tables become more complex as a company grows and stock compensation increases, and cap table complexity is highest prior to an IPO. With Carta, companies making the transition to the public market will have accurate and up-to-date digital security holdings and stock ledgers when they need it most. <\/p>\r\n\r\n Furthermore, the due diligence process (related to equity management) flows through the cap table. Having a single-source of truth for the company\u2019s capital structure and corporate governance is essential in making the diligence process headache-free<\/a>.<\/p>\r\n\r\n