WHY GO PUBLIC?
·
The long term
benefits of being publicly traded are numerous and can include:
·
improved
liquidity,
·
higher company
value,
·
the ability to
make acquisitions
·
attract and retain
employees with the newly public companies stock and greater access to capital
at a lower cost.
·
In addition,
having public trading status allows a company the ability to make acquisitions
with their stock, since publicly traded stock is viewed as currency for mergers
and acquisitions.
·
More over, public
trading status often leads to a higher price for a later offering of a
companies securities.
DISCLOSURE
·
Public companies
must comply with ongoing disclosure requirements. These requirements can change
how your company operates and relates to investors. Even if your company
is not large and famous, it will be subject to greater transparency and public
scrutiny. And, yes, complying with these reporting requirements will take
time and cost money. The key is to get good advice about what to include
in your SEC disclosures.
