Going Public: how long does it take?

The process to go public via initial public offering (IPO) or Direct Public Offering (DPO) follows a prescribed path. While some elements can be handled simultaneously, there are a number of parts that must be done sequentially. As a result, it will often take between six and nine months for a private company to go public.

We have highlighted the major time elements to provide a basic understanding of the process.

1. The financial audit:

Completing the financial audits is perhaps the most time consuming part of the IPO process. The actual timeframe will largely depend on the current state of your financial books and records. If your firm is organized, has internally generated income statements, balance sheets and statements of cash flow - with notations, you should be in pretty good shape. If your books and records are already prepared by a CPA, reviewed by an accounting firm or audited - that is best. Generally, it will take about 30 days for a start-up to be audited, while it can take 60-120+ days for a large operating business to be audited.

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