Go-Public Planning in Canada: What Founders Must Prepare
Why This Matters
For many founders, the idea of going public sparks visions of capital, visibility, and a seat at the table with major players. But in Canada’s venture markets—especially the TSXV, CSE, and Cboe Canada—the difference between success and failure often lies in what happens before day one.
Too often, companies jump into a go-public transaction without understanding what’s required to support it. The result? Missed timelines, cost overruns, loss of investor confidence, or stalled listings.
Going Public Isn’t Just a Transaction—It’s a Transition
The moment a private company becomes public, its obligations change dramatically:
- Continuous disclosure requirements
- Insider reporting
- Board governance standards
- Market regulation oversight
- Shareholder engagement expectations
You can’t retrofit readiness. Exchanges, auditors, legal counsel, and potential investors will all expect a certain level of maturity—both operationally and culturally.
What Planning Really Looks Like
Founders often ask, “When should we start preparing?” The answer: six to twelve months before you intend to file anything. That timeline depends on the current state of your business.
Key planning areas include:
1. Corporate Structure
Is the corporate entity clean, with a single operating company and no unnecessary holding structures? Are there shareholder agreements, vesting schedules, or side deals that could complicate disclosure?
If a reorganization is required, do it early. Trying to collapse multiple entities mid-audit or mid-filing adds risk.
2. Financial Records and Audit Readiness
Are your books audit-ready under IFRS? Do you have two or three years of clean financial statements? Have your subsidiaries or acquisition targets been audited?
This step often takes longer than founders expect—and delays here can cascade through the rest of the transaction.
3. Legal Documentation
Is the minute book up to date? Are there any outstanding litigation issues, convertible instruments, or IP ownership gaps? How about employment contracts, options, or RSU plans?
Public companies must be legally tight. Missing or vague agreements create red flags with both regulators and investors.
4. Capital Structure and Shareholder Dynamics
Do you have a well-organized cap table? Any investor disputes, preference share terms, or unexercised rights that need resolution?
You’ll also need to think about escrow, seed share tiers, and how much equity you’re prepared to give up in a financing.
5. Investor and Market Positioning
How are you telling your story? Do you understand the investor base that fits your stage and sector? Are your IR materials—deck, CIM, FAQs, website—ready to support conversations?
Going public is partly operational and partly narrative. If your message isn’t clear or credible, capital will be harder to secure.
Planning Doesn’t Mean Waiting
Some founders hear “plan early” and think “wait longer.” That’s a mistake.
Proper go-public planning is not about delay—it’s about de-risking the execution phase. You want to move quickly once the transaction begins, and the only way to do that is to handle friction points early.
This includes:
- Selecting the right exchange and route (IPO, RTO, CPC, direct listing)
- Securing auditor availability
- Engaging legal counsel early to scope the work
- Building realistic timelines tied to financial readiness
- Understanding escrow rules, prospectus triggers, and disclosure requirements
Founders Often Miss This
The number one overlooked issue? How resource-intensive the process becomes—especially for early-stage companies with lean teams.
Going public will take up executive bandwidth, stretch accounting teams, and demand legal coordination. If a founder or CFO assumes they can “fit this in” around day-to-day operations, the deal will suffer.
Experienced teams treat the go-public process like a product launch or financing round—it gets its own roadmap, milestones, and accountability.
Closing Thought
Going public in Canada is entirely achievable—but only if you’re prepared. The companies that win in public markets are the ones that did the real work before the market ever saw them.
Plan accordingly. The cost of being unprepared is far higher than the cost of planning well.
For more insight on pre-listing readiness and exchange timelines, contact us.