IPO & Going-Public Company Audits
dbbmckennon provides independent audit services for companies preparing to enter the public markets through an IPO, uplisting, direct listing, reverse merger, de-SPAC, or other public-market transaction.
We serve as the company’s independent auditor, focusing on the financial statement audit and related reporting requirements.
Audit Experience for Going-Public Transactions
Going public creates a different level of financial reporting scrutiny.
Historical financial statements may need to be audited under PCAOB standards, reporting timelines can accelerate, and accounting matters that were manageable as a private company may become more significant in the public-company environment.
dbbmckennon works with management teams, securities counsel, valuation specialists, and other professionals involved in the transaction while maintaining our role as the independent auditor.
Our experience includes companies preparing for:
Initial public offerings
Uplistings
Direct listings
Reverse mergers
de-SPAC transactions
Other transactions resulting in public-company reporting obligations
Financial Statement Audits for Registration Statements
A registration statement can require multiple years of audited financial statements, interim financial information, and other financial reporting depending on the transaction and issuer.
Our team works with companies to perform the required audit and review procedures and coordinate with the broader transaction team so financial statement requirements are addressed efficiently and on schedule.
As the independent auditor, our role is focused on the financial statements and related auditor reporting requirements.
Transitioning From Private to Public Company Reporting
Companies preparing to enter the public markets often encounter new financial reporting requirements, more compressed deadlines, and greater scrutiny from investors, regulators, boards, and other stakeholders.
Accounting areas that frequently become more significant during this transition can include:
Equity and stock-based compensation
Complex debt and financing arrangements
Classification of preferred equities
Business combinations
Revenue recognition
Earnings per share
Related-party transactions
Going concern considerations
Presentation and disclosure requirements
Our audit team brings experience working with emerging-growth companies and businesses navigating these transitions.
PCAOB Audit Experience
Companies entering the public markets need an audit firm that understands the requirements applicable to public-company financial reporting.
dbbmckennon is a PCAOB-registered CPA firm with experience performing audits and reviews for SEC reporting companies and businesses preparing to become public.
For additional information, see our PCAOB & Public Company Audit Services.
Why Companies Choose dbbmckennon
Experience With Emerging-Growth Companies
We regularly work with businesses transitioning from privately held companies into the public markets and understand the pace, complexity, and changing reporting expectations that accompany that process. We work with a human touch to ensure complete and clear communication throughout the process.
Partner Involvement
Our partners remain actively involved throughout the engagement, giving management teams direct access to experienced professionals when significant accounting or audit matters arise.
Responsive Communication
Going-public transactions often involve multiple parties and tight timelines. We emphasize early communication and coordination so potential audit issues can be identified and addressed as efficiently as possible.
Independent Auditor Focus
Our role is clear: we serve as the independent auditor. We focus on the audit and related reporting requirements while working collaboratively with management and the other professionals involved in the transaction.
Frequently Asked Questions
When should a company engage an auditor before going public?
Oftentimes, the audit is one of the last considerations of management as they prepare for the transaction, which makes the audit a gating item. Ideally, a company should involve its auditor early enough to evaluate the historical financial statements and identify audit or reporting issues before the transaction timeline becomes compressed.
Does an IPO require PCAOB-audited financial statements?
Companies pursuing an IPO or certain other public-market transactions are required to include financial statements audited by a PCAOB-registered accounting firm. The exact requirements depend on the issuer and transaction.
Can dbbmckennon audit a company preparing for a reverse merger or Alterntive Public Offering?
Yes. We provide independent audit services for companies preparing for reverse merger, alternative public offering, and other transactions that may result in public company reporting obligations.
Does dbbmckennon work on de-SPAC transactions?
Yes. We provide audit services in connection with companies involved in de-SPAC and similar public-market transactions, subject to the specific facts and independence requirements of the engagement.
Can you help management prepare for the IPO?
We can discuss audit requirements and coordinate with management and the transaction team, but we serve as the independent auditor. We do not perform management functions or act as an investment banker, placement agent, or transaction advisor.
Talk With an Audit Partner
If your company is preparing for an IPO, uplisting, direct listing, reverse merger, de-SPAC, or another public-market transaction, we would be glad to discuss the audit requirements and timing.