Going public through an ipo has countless advantages for companies with huge growth potential, a market opportunity, a unique idea, product or service, a need for easier and greater access to capital for future projects, acquisitions, or assets.
Purpose of Going Public:
- Liquidity - Fact: Investing in a public company is much more accepted by investors then in private firms, not to mention far easier. It is also a great way for present owners to divestiture their original investments.
- Value - Fact: Public companies are often worth a lot more then their private counterpart. Public companies can also experience remarkable growth through stock appreciation.
- Access - Fact: A public company has a higher and easier level of access to capital markets and other resources which can drastically fuel corporate growth. The companies stock can also be used for direct acquisitions and leverage for other financial endeavors.
- Attractiveness - Fact: Stock options are an inciting form of leverage that can be used to attract top tier employees.
Bring Your Company Public
There are numerous options when positioning a company for public growth and expansion. Since business expansion usually requires additional capital; one way to attract interest from prospective investors and funding sources is to bring the company public through an ipo or s1 filing. Even start-up, early-stage and small businesses can effectively and inexpensively go public via an Alternative Public Offering (APO). In many cases, an APO is more attractive than either the venture capital or angel investment route. APOs are also a cost effective means of going public when compared to a conventional IPO or Reverse Merger (an Alternative Public Offering also eliminates the risks involved with Reverse Mergers).
It is important for the company and business owner to understand that bringing a company public can be a complex and confusing process and expert assistance can make a world of a difference.