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.
· 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.