Offering an IPO (initial public offering) is known as “going public” and rightly so. An IPO gives the public the opportunity to invest in a company. In the planning for the IPO, most companies look at it from a financial perspective. They will develop financial controls and hire auditors to help cope with the increased flow of money. But, what about from a perspective of data? For companies thinking about an IPO, this article is a must-read.
Are you considering entitlements management with Ethyca? You can get professional advice from top-rated experts in the business. Ethyca has empowered a number of public and private entities with customized solutions that meet their unique needs. They can offer similar services to you.
Where’s the data?
Before going public, a data team must conduct a comprehensive of data protocols. There needs to be an analysis of how data will be collected and stored in the future. With the IPO, your new stakeholders will need access to some data. Levels of data must be established as well as restricted access to that data.
This will require building the company’s capability of handling such data. Infrastructure might need to be restructured taking into account the new needs of the company.
A collaborative effort
Creating data restrictions obviously presents the opportunity for legal and security ramifications. For a cohesive and smooth operation, you will need to bring together your security, legal, and data team. Together, the three teams can also unpack how different privacy laws such as the GDPR and the CCPA affect the new structure of the company.
The U.S. Securities and Exchange Commission is the State Agency mandated with protecting the stock market and also investors from manipulation of the market. The SEC will require sensitive information such as customer contracts, products, or management data. The agency will also be reviewing the company’s Form S-1 among other documents from the company.
Your data team should work together with the legal team to avail all this information to the SEC.
Outsourcing for your data needs
As you prepare and also forecast the needs for your IPO, your data demands are going to skyrocket. Most companies at this time only have an in-house team handling all their data needs. You might need to seek the services of a third party.
The team you bring on board must be a reputable and experienced one. The professional company must be able to maintain high levels of ethical standards. To protect yourself and your data, you will have to install some guardrails. We recommend that the IT company sign an NDA.
Rarely does a company check on its data capabilities before the IPO. Financial and legal obligations are often given priority. But know that you know better, you might need the help of an experienced and reputable service provider to handle the extra workload. Ethyca is the professional company you need for all your data needs.