In what OpenAI CFO Sarah Friar recently categorized as a ‘marker on a journey,’ the CFO’s role in the IPO process can be daunting and time-consuming but ultimately rewarding. Though the IPO market has slumped in recent years, the path to going public requires the development of a strong foundation led by finance if there is hope to leverage the business environment that is now ripe for change.
With a business-centric administration, business leaders are excited about what’s to come. Dean Quiambao, former auditor turned chief relationship builder at accounting, consulting and technology firm Armanino, says that because of this change, CFOs working toward a 2025 IPO are in a much better position than those who were last year. With the right approach, he hinted that IPO-ready companies may have the perfect combination of market conditions and energy to time an offering just right in the latter half of the year.
The emergence of TXSE and the importance of communication
The new Texas Stock Exchange, which has notable backers and is looking to begin operations in 2026, has quietly positioned itself as a potential competitor to the NYSE. Quiambao says the recent launch of NYSE Texas only helped further legitimize TXSE.
“[The NYSE] gave TXSE all the wind they needed,” he said. “They basically gave them a stamp of validation. The ideas here are rooted in better business sentiments — making things more efficient, being pro-business and making it easier to grow and build companies.”
Quiambao says that regardless of which exchange a company chooses, aspects like data preparation and non-siloed communication are vital building blocks in the IPO process. He noted companies are beginning to communicate like public ones do, especially at the top between decision-makers and investors long before they make a move to go public.
“I’ve seen companies starting their informal investor conversations on a quarterly basis now before they go public,” he said. “They invite people to their meetings and say, ‘Hey, we’re acting like a public company now,’ and they’re inviting investors and their leadership to get acclimated to their story, team and future.”
“The problem in 2021, which resulted in an IPO freeze, was that many companies that went public shouldn’t have,” he continued. “How are companies adjusting their approach to avoid that? By getting ahead of the game, going through the motions of the communication process early on.”
The impact of the election and DOGE
Though CFO confidence rose after Trump’s election, critics in the federal government and the Democratic minority have pushed back against the new administration’s focus on efficiency through the Elon Musk-led Department of Government Efficiency. However, DOGE’s push for efficiency has also spurred companies of all sizes to evaluate their internal operations, according to Quiambao.
“Disruption has always been about fine-tuning business models with efficiency, and when we look at companies that have won in the marketplace, it’s because they are driving efficiency into their business models,” he said. “There is a sentiment right now that companies, particularly as they prepare to go public, are driving efficiency into their spending not only to be as profitable as possible but to ensure their competition doesn’t outpace them.”
“Everyone in tech, in particular, is ‘go go go’ right now since the election,” Quiambao added. “The people I am meeting with across technology are optimistic about mergers, funding and business-building again. A lot of that is due to the president talking about AI investments, winning the technology war and building businesses here in America.”
Driving efficiency is a challenge regardless of industry, but CFOs will play a pivotal role as finance’s influence on strategy continues to grow. According to Quiambao, implementing growth and efficiency efforts simultaneously will be a delicate balancing act for many companies on their IPO journey.
“The people I am talking to are calling these things out. Internal efficiency is the sentiment right now,” he said. “I went to a VC holiday party, and there were rumors about Trump being there. People were so excited, and even though it ended up being a Trump impersonator, it was still interesting to see the amount of energy in the room.”
Beyond the IPO
Ensuring the entire team, particularly the finance team, is aware of the post-IPO workload is pivotal, and can be one of the biggest challenges a finance leader can face when being pushed to prepare their team for an IPO. “CFOs tell me they can’t go public because they can’t forecast their numbers, and they don’t want to be in the penalty box with the board if they go public and then have inaccurate forecasts,” Quiambao said.
He spoke extensively about the importance of a “unified understanding” of goals across leadership, confidence in the organization’s tech stack and the finance team’s ability to accurately report and forecast. These functions are not just for the IPO’s sake but for long-term sustainability. Quiambao warned if the finance team’s capabilities stall post-IPO, problems can arise.
“Everyone in the IPO process falls victim to looking at it as the finish line,” he said. “But it’s just the beginning. If your data is in order, if you have the technology stack you need, if you have confidence in your people and your company’s ability to scale and if you’re all singing from the same songbook, so to speak, then you’re ready,” he said. “IPO-ready companies tell me they want to flip the switch in Q4 but would consider making the move in Q3 if the market heats up — these conversations are hot right now and we are feeling it as an organization too.”
