Earlier stage entry can be a double-edged sword because its sometimes less complex, but there’s more to do in the process. Historically, companies prepared for an IPO over one to three years, now they sometimes try to go public in six months or less.
With the one-to-three-year timeline, a company became audit-ready, completed private company audits (American Institute of Certified Public Accountants audits), then uplifted these to public company audits (Public Company Accounting Oversight Board audits), developed systems, hired people, and more. Now that’s all crammed into a four-to-nine-month window and can lead to a rushed process with missed timelines.
While it’s possible to fit this all in a short time frame, the risks and costs are high. Companies that thoughtfully built their company to go public can do so in six months; companies that don’t have anything in place, including an audit, struggle to go public earlier than nine months—there are always exceptions, however