Is your company’s IT infrastructure prepared for the increased demands of an initial public offering (IPO)? Are you wondering if a managed service provider (MSP) can support you as you transition to a public company?
As an MSP ourselves, Intelligent Technical Solutions (ITS) knows how an MSP can help meet the heightened requirements of going public – from enhanced cybersecurity to compliance management.
In this article, we invited Sean Harris, ITS’ Senior VP for Cybersecurity, to share his experiences with public companies. It’ll detail the top eight ways an MSP can support your IPO journey.
By the end of this article, you can decide if partnering with an MSP to help you on your IPO journey is worth it.
How an MSP Can Help with IPO Transition
1. Aligning with Compliance Standards and Regulations
An IPO brings strict regulatory requirements, including specific standards for data handling, reporting, and cybersecurity. It’s a difficult process to get right.
“When you know you’re going to go public, you need maturity in your organization, and you need to do it quickly,” Harris said. “Outsourcing IT can be a shortcut.”
MSPs guide companies through frameworks like SOC 2 (Service Organization Control 2), ISO 27001, or industry-specific standards like HIPAA (Health Insurance Portability and Accountability Act) for healthcare or CMMC (Cybersecurity Maturity Model Certification) for defense. The MSP conducts a thorough assessment of existing IT systems, identifies compliance gaps, and helps implement the necessary controls.
This not only fulfills regulatory compliance; it also strengthens future investor confidence.
2. Strengthening Data Security and Cyber Resilience
Public companies face increased security risks as they become more visible targets for cyber threats.
You’ll need 100% trust in your IT team’s ability to maintain data security.
MSPs give you a security team you don’t have to build yourself. They employ cybersecurity strategies that include multi-layered security measures, such as firewalls, endpoint protection, SASE (secure access service edge), and intrusion detection systems.
MSPs also conduct regular vulnerability scans, penetration tests, and real-time monitoring. These potential threats are detected and foiled before they disrupt operations or damage your reputation.
3. Implementing Incident Response Plans for Public Readiness
Another requirement for public companies is the obligation to disclose cybersecurity incidents. This requirement forces future IPOs to have a tried and tested incident response plan – something strong MSPs can easily provide.
They help design and implement incident response strategies across multiple companies that include clear protocols for identifying, managing, and reporting incidents. Mature MSPs also establish response frameworks tailored to your industry.
4. Providing Enterprise-Level IT Infrastructure and Scalability
Preparing for an IPO often requires scaling IT systems to support new regulatory and operational requirements.
MSPs bring the resources and expertise to upgrade your infrastructure to enterprise standards. They assess your current IT capabilities and help implement systems like cloud-based ERP (enterprise resource planning) solutions, secure data rooms, and project management software.
These solutions enable efficient cross-functional collaboration and ensure that your company has the technology infrastructure necessary to scale smoothly.
MSPs also help implement redundancy measures, backup solutions, and disaster recovery systems to ensure business continuity, even during periods of rapid growth.
5. Transitioning to Quarterly Reporting Systems and Ensuring Data Transparency
Public companies also adhere to quarterly financial reporting requirements, which demand meticulous data management and transparency.
MSPs support these requirements by helping companies establish data management practices that streamline reporting and ensure accuracy. MSPs assist in setting up virtual data rooms, implementing document management tools, and organizing data workflows.
These measures facilitate efficient reporting, meeting the expectations of shareholders and regulatory bodies.
6. Conducting Risk Assessments and Building Cyber Maturity
Another aspect of IPO readiness is performing a comprehensive risk assessment to identify potential vulnerabilities in the organization.
MSPs conduct these assessments, examining everything from network security to data access controls and employee practices. By identifying areas of risk, MSPs help build a roadmap for strengthening cybersecurity, governance, and compliance.
MSPs then establish a continuous improvement process, ensuring that your organization maintains a high level of cyber maturity, capable of adapting to the evolving threat landscape.
7. Ensuring IT Compliance Across International Borders
For companies with a global presence or plans to go public on an international stock exchange, compliance must align with multiple regulatory frameworks. An MSP can help ensure that IT practices are consistent with both domestic and international regulations.
For example, a company listing on a U.S. exchange might follow SOC 2, while international exchanges might require ISO 27001. MSPs navigate these complex regulatory demands, helping companies avoid costly compliance missteps while strengthening cross-border IT governance.
8. Enabling High Availability and Disaster Recovery for Critical Operations
During the IPO process, business continuity is essential, and system downtime can have significant financial and reputational consequences. MSPs ensure high availability of systems by implementing redundancy, setting up failover mechanisms, and designing disaster recovery plans.
MSPs help businesses maintain uptime, even in the face of unexpected disruptions, by providing warm or hot site backups that enable seamless transitions. By ensuring operational continuity, MSPs help prevent interruptions that could delay IPO preparations or disrupt critical reporting timelines.
Ready to Partner with an MSP for Your IPO Journey?
Going public is a complex process requiring high levels of security, compliance, and operational readiness. By partnering with the right MSP, companies gain access to industry expertise, advanced technology solutions, and a comprehensive support network that simplifies IPO preparation.
MSPs provide the foundation for a smooth IPO transition by aligning your organization with regulatory standards, enhancing cybersecurity, and ensuring data transparency.
Are you ready to take the next step toward becoming a publicly traded company? Connect with ITS to create a customized plan that supports your IPO goals. You may also check out the following resources from our Learning Center:
- Is a Managed Service Provider (MSP) Worth the Cost?
- [FREE EBOOK] An Executive’s Guide to Choosing the Right MSP for Your Business