"Going Public" is raising money for a company by selling shares of the company to the general public. Many private businesses decide to go public when they need additional capital for growth and sufficient financing is not available from the personal resources of the principals, their family and business associates or from financial institutions.

 

The three most common reasons for taking a privately owned company public through an IPO (Initial Public Offering) are:

• To raise money for working capital, repayment of debt, expansion of plant and equipment etc.
• To increase the net worth, enabling the company to expand its borrowing capacity or obtain more favorable credit terms and conditions.
• To allow the original owners to convert equity in the company to cash by selling some of their stocks in connection with the company’s initial offering and/or creating a publicly traded stock which can be borrowed against or sold at some future time.

So, going public:

• may unlock vast amount of capital to you at low cost.
• does't have to repaid back
• may enhance your company's image
• may increase corporate net worth
• may permit additional borrowing in the future
• may help you retain and recruit key executives
• may provide liquidity to owners/shareholders.

There are many options available:

• Institutional Investors
• Joint Venture
• R&D Partnership
• Exempt offering and private placement
• Venture Capitalists
• Mezanine Financing
• Leasing
• and Others.

Sounds good...?

But it is a serious decision. One thing is sure.. YOU DON'T HAVE TO MAKE THIS DECISION ALONE
You need EXPERTS' advice before you jump to a decision.

Hence, before deciding to go public, a company should obtain expert financial advice in order to determine whether it is at an appropriate stage of development to benefit from public financing. A reporting company assumes costs and obligations that may outweigh the advantages of going public. The decision to go public and the timing of going public are important strategic considerations that should be made in the content of a well developed business plan.

We are here to help you at every step of this most crucial decision.
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