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.
IPO - Pros and
Cons
The going public 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, it
must consider the pros and cons involved in making that
decision, coached by its IPO advisors and others underwriting an
IPO.
Additionally, there are
new responsibilities involved when a private company becomes a
publicly traded business. Although many benefits can ensue
from
going public and the related IPO services, the company directors
and principals must critically judge all the options and
impending tasks of becoming a public company.
The direct IPO
process requires pertinent considerations that need be touched
upon with the help of an experienced securities attorney; he can
help your company evaluate the advantages and disadvantages of
an Initial Public Offering (IPO). The following analysis on how
to do an IPO is in
order to help you make a decision that is best suited for your
enterprise.
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 them
to the investing public. This is the biggest difference in
operational status of a private vs. public company: The public
company can offer its stock to the public at large, 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
broker-dealers prefer to deal with a public company when
underwriting an IPO. A well ran
private company with a healthy bottom line, quarter after
quarter, is an excellent candidate to go public and attract
outside investment capital.
Once your company goes public
you can sell stock directly
to investors. The lack of funding alternatives inherent to
private companies will become a thing of the past! No longer
will your funding initiatives be restricted to only private
venues. The unsavory terms offered private companies from Angel
Investors and Venture Capitalist will become a distant memory!
Once you file a registration statement with the SEC (Securities
and Exchange Commission), and follow other guidelines, you can
even advertise your opportunity and perhaps contract for the
services of an IPO underwriter to sell your stock. Imagine being
able to promote your offering on the Web, TV, radio, newspapers,
magazines, etc.
This allows you to go public without having to depend
entirely on outside parties to connect you to capital sources. We can introduce you to sources
of capital including our network of Investment Bankers and
other financing groups. Our direct IPO advisory services will allow your
company to be able to compete with the big firms when trying to
raise capital.
IPO News: The Main Advantages of an Initial Public Offering (IPO)
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 and use it for varied
activities, such as: currency for mergers and acquisitions, as
stock options to help retain key personnel, they may also sell
their shares in the open market.
Additionally, the business will
have greater access to the capital markets for future capital
inflow, guided by IPO advisors. In general terms, a company’s
valuation and debt-to-equity ratio will 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 are avoided with
the help of an IPO adviser.
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 IPO 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 most companies,
if trading on the OTCBB, NASDAQ, etc
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. 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:
● There are no reporting requirements
● There is no business longevity requirement
● No Revenue or earnings requirement
● No minimum asset requirement
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.
IPO Definitions