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A solution for systematizing finances when entering an IPO
IPO (initial public offering) is a process in which a private company offers its securities to the general public for the first time. Going public is an important step in the development of a business. With the help of an initial public offering, you can raise additional capital for business development, increase the visibility of your products or services, strengthen your reputation and obtain tools to increase the value of your company on the market. A company will be evaluated first and foremost on its financial results, so correct consolidated statements are one of the key success factors for going public. One of the major mistakes made by companies planning their IPOs is underestimating the readiness of their financial and operational controls. The tasks to be performed by the companies, which are planning an IPO, in terms of transparency of financial planning and accounting, include:
Consolidation of data and preparation of consolidated statements according to IFRS/GAAP standards;
Transparency and "auditability" of the financial system, including historical data on the financial position of the company (it is required to include financial data for the 3 preceding years in the prospectus);
Significant reduction of labor costs and reporting time;
Increased efficiency of systems of control over operations conducted, including internal audit systems, confidential reporting of violations, availability of a code of business conduct;
Increasing the efficiency of control systems over operations, including internal audit systems, confidential reporting on violations, the existence of a code of business conduct;
Increasing the accuracy of company planning, forecasting of key performance indicators, and analysis of deviations.
The challenges listed are non-trivial: this restructuring of financial management reveals the main difficulties faced by organizations in financial accounting.
The success of your IPO is highly dependent on the ability to quickly and regularly provide correct financial reporting and accurately forecast the company's bottom line. In order for your company's finance team to work on more than just collecting and processing data for quarterly consolidated reporting, you need to automate your financial management as much as possible. Automation eliminates time-consuming manual tasks, increases speed, reduces errors and gives more time for data analysis. Odyssey Consulting Group offers a solution to prepare the financial accounting and planning system for going public. Odyssey Consulting Group solution is based on IBM Cognos Controller which is a specialized IT system for financial statements preparation, consolidation and release with more than 200 pre-configured reports and built-in financial analytics and deep consolidation features.
More efficient financial risk and working capital management;
Reduction of IFRS reporting period;
Increased accuracy and budgeting horizon;
Ability to prepare transformed statements in accordance with IFRS/GAAP/RAS and switch easily between different reporting standards due to automatic consolidation of the company's financial data;
Assurance of the financial results accuracy;
Ability to make managerial decisions based on the analytics visualized in Odyssey Consulting Group.
