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GOING PUBLIC
Many entrepreneurs have found going public to be incredibly rewarding - for their
companies and for themselves.
Why are private companies interested in going public?
- To raise capital quickly and more easily;
- To form mergers;
- To acquire other companies;
- To gain more media attention;
- To enhance the corporate image;
- To provide shareholders with liquidity;
- To facilitate corporate borrowing from banks;
- To provide employee stock option benefits and compensation;
- To create wealth for the founders and original investors.
Why do founders of private companies want to take their company public?
- To create significant wealth for themselves;
- To obtain loans from financial institutions using their stock as collateral;
- To increase the liquidity of the shares they own;
- To gain prestige and respect in their community;
- To improve access and raise capital from the public;
- To grow their business through mergers and acquisitions;
- To reduce the need for venture capital and bank financing.
Little known facts:
- You do not need a brokerage firm or investment banking firm to take your
company public.
- You do not need to give up control of your company.
- You can generally raise capital easier, faster and at a lower cost after going
public.
- You do not need any minimum level of sales, profits or assets to become public.
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