When preparing for an IPO, it would be prudent for management to plan for the SEC compliance and reporting requirements that will affect the company after the registration statement is declared effective. Management should analyze — and should consider engaging specialists to evaluate — whether the processes and controls the company has established to meet these requirements are appropriately designed and implemented. The company may need to develop new processes and controls to ensure that it complies with ongoing regulations fully and in a timely fashion (e.g., periodic reporting requirements, current reporting requirements, and SEC Regulation Fair Disclosure [FD]).
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