Article
Tax readiness for IPO success: A strategic guide for CEOs and CFOs
July 30, 2025 · Authored by Rich Croghan, Findley Gillespie, Seung Yoo
The journey to a successful initial public offering (IPO) requires meticulous preparation across multiple disciplines, with tax readiness serving as a critical pillar of success.
For CEOs and CFOs preparing for this transformative milestone, understanding the tax implications and requirements isn’t merely about compliance – it's about positioning your company for long-term success as a public entity while avoiding costly surprises that could derail your IPO timeline or valuation.
Improve your company's tax function IPO-readiness with insights into the essential tax considerations, strategic planning elements, and execution framework. Based on best practices from successful public offerings and lessons learned from challenging IPO processes, this road map can help you navigate the complex tax landscape with confidence.
Your tax provision methodology will be subject to intense scrutiny as a public company.
The strategic framework: Four phases to tax readiness
Phase 1: Foundation assessment (12-18 months before IPO)
The foundation phase begins with a comprehensive assessment of your current tax posture. This isn't merely a compliance review – it's a strategic evaluation of whether your tax structure supports your IPO objectives and post-public company operations.
- Assemble the Right Team. Tax readiness requires a combination of internal expertise and external advisory support. Having experienced tax advisors with IPO expertise who can provide objective assessment is necessary. They can identify issues you might miss, and offer strategic guidance based on market experience.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.