Making the decision to go public by making stock available for sale in an initial public offering (IPO) is a significant milestone for any small company. Taking a company public is a complex process that requires a significant amount of paperwork and the help of a securities attorney like those at Carter West Law.
Despite the challenges associated with going public, there are a number of benefits to be had by taking your company public.
Going public offers your company prestige.
Reputation counts for a lot in today's competitive marketplace. Privately owned, small businesses can benefit from a boost in prestige by making the decision to go public. An IPO allows your company to be listed on a stock exchange, ensuring maximum exposure.
You will be able to harness the prestige received from your IPO and transform your new-found notoriety into an increase in sales volume over time.
Going public can help you attract top talent.
The right employees make all the difference when it comes to the success of any company. You want to attract the most skilled and knowledgeable employees possible, and making the decision to go public can assist you in your recruitment efforts.
Once your IPO is in place, you can offer future employees access to stock and stock options programs. These incentives are attractive to top-tier talent, and having the ability to give your employees access to stock benefits will help you recruit more talented individuals to bolster the success of your company.
Going public can increase financial flexibility.
Running a successful business can be costly. Business owners often need to utilize funds from outside sources when advertising and manufacturing products. Once a company has gone public, they have the ability to seek financial help outside the banking and loan system.
By issuing additional stock that can be traded on the stock exchange, you are able to raise funds quickly. Spreading the ownership of the company out among all stockholders also helps to reduce financial risk in the longterm.
Taking your company public can be an exciting and profitable decision. An experienced attorney will be able to help you examine your company's financial status and fill out the forms required to register your company with the Securities and Exchange Commission.
If you are thinking of taking your company to the next level by going public, talk to a knowledgeable attorney about the risks and benefits of making stock available to the public.