9 Little Known Facts About Go Public

gnbvi68 By gnbvi68, 3rd Jun 2013 | Follow this author | RSS Feed
Posted in Wikinut>Business>Business Opportunities

Many employers have preconceived notions about taking their company public, most of which are not accurate. Nine little known facts:

9 Little Known Facts About Go Public

Many employers have preconceived notions about taking their company public, most of which are not accurate. Nine little known facts:

1. You do not need to be an investment bank or brokerage firm to take your company public.

Many companies choose to go public via direct public offering. In the registered public offering, a private company following the same rules and regulations are followed by the companies that go public with an investment banking firm.

2. You do not need to go public through a reverse merger.

Many companies falsely believe that they are too small or not sufficiently attractive to go public so they decided to go public through a reverse merger transaction. The truth is that almost any company can go public via direct public offering.

3. You do not need to give up control of your company.

Senior executives of small to mid-sized companies believe that they will lose control of their companies during the process to become public. Although there are additional constraints due to government regulations and investor demands, it is rare for a company to relinquish control. When the company did release control during the process of an initial public offering, they always did so willingly because they have the option not to proceed with the transaction.

4. You can significantly increase your personal wealth to go public.

Going public is a great way to generate great wealth. private companies are often worth far less than their public counterparts. Process became public only adds great value for the shares of any private business.

5. You can give yourself and your investors with an exit strategy and liquidity.

The company went public for various reasons. One of the benefits to the public, including the fact that people in and their investors can liquidate their holdings from time to time.

6. You can use the new shares issued to acquire other companies and grow your business.

Many companies that want to go public because they understand that issue stock to acquire other companies is a tremendous advantage. What private company would not be interested in hearing an offer from a publicly traded company?

7. Generally you can get capital more easily, more quickly and at lower cost after going public.

Investors have a natural preference for investing in publicly traded companies. As a result, they are more willing to invest in a public company.

8. You can issue stock options to attract and retain high quality employees and consultants.

Smart and talented people is always difficult to get. Public companies can effectively use stock options as an incentive nice that they are private companies can not offer.

9. You do not need any minimum level of sales, profits or assets to be public.

Many private companies that think they need to achieve certain milestones to be public. The fact is: there is absolutely no requirement of sales, earnings or assets to private companies to go public.


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author avatar gnbvi68
I am from India done my MBA in Pune I am really passionate about writing and an freelancer too.I am married and have two kids.

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