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       IPO Initial Public Offerings

                                                                                          Information on Going Public

 

                  We take companies public. If you would like to take your company
                  public, please contact us at (310) 888-1195 or email us for a free report.
                  We believe advisors should be properly paid for referrals when applicable


Pros and Cons of an IPO


The pros and cons of going public or an Initial Public Offering. The process is an expensive consideration, and even more so for small cash-strapped young companies. When a company is contemplating the IPO process of going public to become a public traded company, it must consider the advantage and disadvantage of going public or an IPO. You will want to have a group with IPO resources and IPO services involved in making that decision. It is important to have a good IPO guide and to accept and to follow the advice of IPO advisors.


The Going Public process, what is it and is it right for your business?


Once a private company becomes publicly traded, it will register securities with the SEC so that it can make an offer and sell those stocks. This is the biggest difference in operational status of a private vs. public company: The public company can offer its stock to the public, whereas the closely held private company is restricted to private venues, such as: friends, family members, and very close business associates.

The above paragraph contains very important considerations, since most companies that go public are interested in raising capital. Furthermore, investment bankers and FINRA member broker-dealers and market makers prefer to deal with a public company when underwriting an investment. A well ran private company with a healthy profitable bottom line, quarter after quarter, could be an excellent candidate to go public. However, that is no guarantee you will find an underwriter to do an initial public offering.


IPO News: The Main Advantages of an Initial Public Offering (IPO)


If you can secure a good underwriter which could be difficult and they are able to raise capital for you and your stock volume is high and steady for a few quarters. It is possible the increased capitalization for the issuing business is a strong point to consider, since a public offering creates a market value on a company’s stock. Company directors and shareholder can retain their stock. At some point they may be able to sell their shares in the open market. This is assuming a strong trading market with stock volume that is consistent over several quarters. However, even this is no guarantee.

Additionally, if you are able to find an underwriter to raise money for you, the business will typically have greater access to the capital markets for future capital inflow, guided by IPO advisors. In general terms, a company’s valuation should improve after going public, making it possible for the company to receive much better terms from lenders.

Undertaking IPO services and offering securities to the investment public will help a company’s management and directors retain a large degree of control. For example, if a private company decides to use the services of venture capitalists to raise capital, instead of going public, the VC’s (Venture Capitalists) might insist on a decision-making position, such as a seat on the board of directors. When a company decides to raise capital via the going public process, those unpleasant considerations could possibly be avoided with the help of an IPO underwriter. If you are able to find a broker dealer to raise money for you. We are happy to be your initial public offerings advisor. As your IPO guide if you have found your stock brokerage firm to do a capital raise for your firm we can do a registration statement. However, if you are not able to raise funds via an underwriter we can still take you public. If would not be an IPO but we can assist you in the going public process.

No doubt the prestige related with becoming a public company has a definite appeal. The fact that it’s easier to promote a public company is also a pertinent consideration. Public companies have historically achieved higher recognition than private companies; hence, the public relations image and the perceived stability of being a public company is good news and a plus.


Are there Disadvantages to Going Public?

Some of the typical expenses associated with taking a company public include fees for legal and accounting services. Of course the SEC (Securities and Exchange Commission) quarterly and yearly reporting requirements are a burden for small companies.


Is There an Easier, Better Way to Go Public?

The easiest way for most companies to go public is to get listed on the Pink Sheets OTC Markets or the Over the Counter Bulletin Board OTCBB. Going public via the Pink Sheets is an excellent first step for smaller companies to become publicly traded entities. Here are some further advantages offered by our IPO adviser: This is if you wanted to be a non reporting public company and trade on the OTC Markets Pink Sheets


       There are no reporting requirements

       There is no business longevity requirement

       No Revenue or earnings requirement

       No minimum asset requirement


We can take even smaller companies public without an IPO. Remember even a start up company can go public.

For a more in depth study of how to do an IPO, and to learn how to take a company public, please visit www.tcc5.com

The price to go public is usually $100,000 and the services are offered by the president of Tiber Creek, a going public services attorney in business since 1975.



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