Controllers Classified An in-depth look at IPOs with Deloitte’s Barrett Daniels
On this episode host Erik Zhou welcomes Barrett Daniels, the co-leader of US IPO services at Deloitte. Drawing from his two decades of expertise in guiding companies through the IPO journey, Barrett takes us on a deep exploration of the process – from the pivotal board decision to the exhilarating moment of ringing the bell at the stock exchange. And, he notes that in many ways, the real work actually begins once the IPO is over.
Barrett also reviews the current IPO landscape and the evolving motivations behind companies opting to go public. He outlines some of the areas that he’d like to see improved in the IPO process and top considerations for companies as they look to get IPO ready (hint: it’s extremely important to have the right team in place!). He notes that organizational preparedness is of course crucial to a successful IPO - companies have to have accurate forecasting, good audit completion times, and controls in place.
If you're curious about the dynamic world of IPOs or thinking about what the process should look like for your company, this episode is a must-listen.
Key Quotes
- “You used to go public for that big check because you couldn’t really get it in the private markets. Nowadays, it is more of a discussion around prestige, providing additional comfort to customers, or liquidity to reward those people that have been with you all this time”
- “My focus is on things that are applicable in every IPO - getting your filings done, making sure you have the right KPIs, etc.”
- “You need to be able to show you can get an audit done by the time the public company would get the audit done”
- “I would like the IPO process to be faster. A lot of the IPO process is done with old school paper. I wouldn’t take audits away; that work needs to be done. But there may be other things we can do to speed up the process”
- “Once that decision has been made, you start putting the team together. The primary pieces of the puzzle early in the process are your accountants and lawyers. For lawyers, hire the partner, not the brand”
- “Once the IPO is over, that’s when the real work begins in many ways, right?”
Time Stamps
- (4:20) The chaos of IPOs
- (8:05) Supporting IPOs in Barrett’s way
- (11:15) Shifts in rationale for IPOs
- (18:02) Improving the IPO process
- (22:15) An overview of the IPO process
- (33:50) The intricacies of preparing for an IPO
- (42:25) The world is run on Excel
Links