Assessing a Healthcare Company for IPO Readiness
The Situation
A leading national provider of pediatric home care was in the process of going public. The Company needed assistance understanding which priority initiatives to focus on in order to reduce the risks of successfully operating as a public company. The PE sponsor engaged Accordion to perform a focused IPO Readiness Assessment to identify any areas that need to be addressed in order for the Company to successfully operate post-IPO.
Services
IPO Readiness
The Execution
- Collected and reviewed relevant materials from the Company, advisors, and third-party consultants, including internal and external reports, policy and process documentation, data room requests, etc.
- Conducted meetings with management and leaders in the following relevant functions: Finance, Accounting, Legal, HR, IT, Reporting, Integration, Tax, Corp. Governance, Compliance, and Investor Relations.
- Assessed overall readiness to become a public company and advised management on critical path to transformation, including:
- Corporate Strategy & Development
- Internal Controls, including SarbanesOxley404(a)and (b), and Enterprise Risk Management
- Close cycle time (Monthly, Quarterly, Annual)
- Accounting operations (including technical accounting)
- SEC / External reporting (quarterly, annual and current reporting)
- Financial Planning and Analysis, including guidance to investors and budgeting and forecasting
- Corporate governance, including Board of Directors and Committees, Internal Audit and whistleblower hotline
- Legal & Investor Relations
- Executive Compensation
- Project and Change Management
- Other regulatory requirements, as applicable
- Developed an IPO Readiness Assessment – identifying the following:
- Critical timeline for key priority initiatives to be remediated and potential impact on other key dates
- Breadth of opportunity for improvement (efficiency gains, corrections, accelerations of information flow, enhanced visibility into business performance)
- Critical path and prioritization based on urgency and risk
- Estimated investment (time, bandwidth and capital) required
- Aligned on recommendations with overall functional leads and reviewed the IPO Readiness Assessment with the sponsor and company management to identify any areas for further deep-dive analysis or implementation.
The Results
Accordion delivered the IPO Readiness Assessment, which enabled the Company to better prepare for running successfully as a public company. Our team was able to highlight opportunities and recommendations for improvements relevant to the Company’s transition from a private entity to a public registrant, while also highlighting critical initiatives and outlining effort and prioritization for all initiatives. Overall, Accordion’s assessment enabled the Company to be set up for success as a public organization.