10 questions you must answer to get ready for a winning IPO or other exit

I like to work with clients who want to be ready for anything. Early planning for an eventual liquidity event such as a buy-out or IPO positions you to maximize your enterprise value when it counts.  Having an exit strategy for your investors doesn't mean planning your own demise as a management team or your retirement. An IPO, and even an acquisition, typically marks the start of a new phase of growth, not the end of your career. So don't delay getting ready for a winning exit.  Here's a short quiz for yourself or the private companies you work with, to see how prepared the company is for a sale or IPO. If you can't confidently answer "yes" to all 10 questions, you have some work to do starting today:

1. Can you and your team describe your business model, addressable market and risk management strategies as well as you can explain what your product does?
2. Are your contracts written, negotiated and maintained to be consistent with your business model and risk tolerance?
3. Are you capturing the business data essential to validate your successes?
4. Have you tested your compliance with local tax, employment and other regulations wherever you operate?
5. Have you been maintaining best-in-class governance practices consistent with your stage of growth?
6. Have you simplified your capital structure as much as possible?
7. Have you secured the rights and assets you need to defend your competitive advantages?
8. Are you reinforcing good communications practices to protect your reputation?
9. Have you set your employment and compensation policies to retain and develop key talent?
10. Are you keeping good records (which does not mean keeping everything)?