Page 67 - Initial Public Offering - An Introduction to IPO on Wall Street

A clear project governing system with appropriate decision-making authority assigned at each
level of the organization, a comprehensive project plan with responsible owners, and a
consistent contact and reporting intonation would be needed for a project management system
to be successful and operate efficiently. Lowered implementation costs, less complications,
project efficiency gains, greater transparency and accountability and better issued resolution
will result in an effective and proven project management approach.
4.4 Building a Going Public Team

An effective IPO needs consultants who have "been there and done that." A business must
recognize the important players in its public team, from the consultants it will employ to the
members of staff who will help prepare the registration statement and other required
documentation.

The deciding to go public could be one of the most significant and the most difficult in the
lifetime of a business. A business needs expert guidance and help to launch a successful IPO.
In the IPO process, the organization will have the ability to pick many of the members, such as
auditors, attorneys, underwriters and accounting consultants. The organization has a
responsibility towards potential shareholders to track the preparation of the registration
statement.

Organizations should ensure that all elements of the document and the principles behind those
elements are fully understood by them. In the IPO process, the SEC will play an important role
as well. It is necessary to bear in mind the effect that the SEC may have on the registration
process of the company when selecting consultants who will help in the IPO process.
4.4.1 The SEC

The SEC is tasked with ensuring that public corporations and their investors have a fair and
even playing field. It has the power to seek civil and criminal action against those who violate
the protocols defined. Liability can arise from material misrepresentations or oversights in a
statement of registration. If, during the registration process, the SEC notices errors or demands
clarity, an IPO may be postponed.

The SEC's Business Finance Division evaluates the registration statement and eventually
permits or refuses an issue for “going effective" and selling securities. Registrants are normally
allocated, based on standard industrial classification codes, to one of the assessment units of
the division.

Every filing is checked by government lawyers and accountants and, in some instances,
business experts or engineers. The evaluation chain eventually leads to the division’s director
and the issuing of a "comment letter."

In order to make sure that these documents are properly notified by prospective investors, the
SEC associates itself with the comprehensiveness and transparency of the prospectus and the
registration statement. Keep in mind that only the medium (for instance, Form S-1 or Form F-
1) used to provide protection is regulated by the SEC. This assesses neither the business nor
the standard of the protection.

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