Expert opinion: 3 key points for Baltic companies regarding IPOs in 2026
Expert opinion: 3 key points for Baltic companies regarding IPOs in 2026
Baltic companies planning an IPO in 2026 need to understand that the process of raising capital for a public company is not just a matter of financing – it is a comprehensive quality test for the entire company. Investors are paying increasing attention to the transparency of financial statements, the maturity of internal control systems, and the ability of management to implement published plans for the future. The public market does not compensate for mistakes as quickly as private capital, and deficiencies in financial statements can pose significant reputational risks.
Raivis Jānis Jaunkalns, BDO Latvia partner and Head of Audit and Assurance:
"In 2026, investors in the Baltic market will be particularly demanding regarding the reliability and transparency of financial statements, as well as internal control systems and management's ability to implement published future plans."
Here are three key areas that companies should pay particular attention to:
1. Quality of financial statements – the basis for investors
Audited financial statements are analyzed in much greater detail than usual during the IPO process, with investors evaluating:
BDO Latvia's experience shows that reports prepared in accordance with International Financial Reporting Standards (IFRS) inspire the greatest confidence, as they allow a company's results to be compared with a wider market and provide a reliable basis for investment.
2. Internal control and financial process maturity
An IPO means a transition to public company discipline, which means that management, prior to listing, must be able to demonstrate that budgeting and cash flow management are systematic, risk identification and management are consistent, and IT and accounting systems are scalable and documented.
The most common risks in the IPO process arise not in the numbers, but in the processes – manual adjustments, dependence on individual employees, and insufficient documentation can lead to errors that reduce investor confidence.
3. Management judgment and conservative forecasts
In the public market, management credibility is tested every quarter. Therefore, during IPO preparation, realistic financial goals, clear assumptions, and open communication about risks are particularly important.
Conservative but achievable forecasts inspire greater confidence in the eyes of investors than ambitious promises that are not fulfilled. This approach helps to strengthen the company's reputation and financial stability in the long term.
An IPO in 2026 is more than just raising capital for Baltic companies – it is a test of value, reputation and business quality. Success requires transparent financial statements, scalable internal control and procedures, as well as realistic and conservative management forecasts. Companies that comply with these requirements will not only attract investors, but also strengthen their long-term business stability and competitiveness.
Raivis Jānis Jaunkalns, BDO Latvia partner and Head of Audit and Assurance:
"In 2026, investors in the Baltic market will be particularly demanding regarding the reliability and transparency of financial statements, as well as internal control systems and management's ability to implement published future plans."
Here are three key areas that companies should pay particular attention to:
1. Quality of financial statements – the basis for investors
Audited financial statements are analyzed in much greater detail than usual during the IPO process, with investors evaluating:
- Revenue recognition policy and cost classification
- Level of detail and compliance of accounting practices with general practice
- Link between forecasts and historical data
BDO Latvia's experience shows that reports prepared in accordance with International Financial Reporting Standards (IFRS) inspire the greatest confidence, as they allow a company's results to be compared with a wider market and provide a reliable basis for investment.
2. Internal control and financial process maturity
An IPO means a transition to public company discipline, which means that management, prior to listing, must be able to demonstrate that budgeting and cash flow management are systematic, risk identification and management are consistent, and IT and accounting systems are scalable and documented.
The most common risks in the IPO process arise not in the numbers, but in the processes – manual adjustments, dependence on individual employees, and insufficient documentation can lead to errors that reduce investor confidence.
3. Management judgment and conservative forecasts
In the public market, management credibility is tested every quarter. Therefore, during IPO preparation, realistic financial goals, clear assumptions, and open communication about risks are particularly important.
Conservative but achievable forecasts inspire greater confidence in the eyes of investors than ambitious promises that are not fulfilled. This approach helps to strengthen the company's reputation and financial stability in the long term.
An IPO in 2026 is more than just raising capital for Baltic companies – it is a test of value, reputation and business quality. Success requires transparent financial statements, scalable internal control and procedures, as well as realistic and conservative management forecasts. Companies that comply with these requirements will not only attract investors, but also strengthen their long-term business stability and competitiveness.