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How to Take Your Company Public and Have People Crawling Out of the Woodwork to Invest
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There are several reasons why a company would decide to go public; here are some of the advantages. Liquidity is a popular reason for going public via OTCBB or IPO, many global lenders and private equity groups will lend against stock collateral. Private companies lose time jumping through hoops with various FICO driven line of credit and lending programs with outrageous interest rates while a public company can strategically offer stock for sale or collateral. Run a solid company with growth and a sea of content stock holders and you've got your own cash register to grow your company.
Another popular reason for going public is to offer stock options to key employees which creates and retains loyalty while reducing cost of compensation. There is no better way to have employees go the extra mile day in and day out than rewarding them with a piece of the company. Stock options are also a way to attract those prized executives that are in demand.
Having a public company allows massive buying power from the perspective of growth through acquisition. Find a company that is the perfect strategic alliance and buy them with company stock. This method of expansion has served the interests of top tier companies since Standard Oil.
What about those companies owned by an individual or a close knit group of entrepreneurs who are getting up there in age and need to start thinking about an exit strategy? Public companies demand higher sale prices and sell faster because of the flexibility of the structure.
We could go on and on about the advantages of going public. Start-up companies wishing to investigate this concept of fundraising you may want to consider the OTCBB, this is a solid and regulated formation to trade your stock publicly with stock holder confidence as opposed to a lesser trusted option called Pink Sheets. For corporations with some age and capital and IPO may be the best way to go, though this process is expensive and can take more than a year, it's worth it for the right companies.
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Take your company public quickly and easily and without the inflated costs! Call Princeton Corporate Solutions at 267-233-0183 for a free consultation. James Scott, CEO of Princeton Corporate Solutions (http://www.princetoncorporatesolutions.com) and associates have assisted 100's of companies with their expansion needs. Stay away from reverse mergers and other concepts that don't work. Talk to a professional corporate consultant today! Call: 267-233-0183 Article Source: http://EzineArticles.com/?expert=James_B_Scott |
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Article Submitted On: November 05, 2009
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MLA Style Citation:
Scott, James B. "How to Take Your Company Public and Have People Crawling Out of the Woodwork to Invest." How to Take Your Company Public and Have People Crawling Out of the Woodwork to Invest. 5 Nov. 2009 EzineArticles.com. 20 Nov. 2009 <http://ezinearticles.com/?Why-Take-Your-Company-Public?&id=3217214>.
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APA Style Citation:
Scott, J. B. (2009, November 5). How to Take Your Company Public and Have People Crawling Out of the Woodwork to Invest. Retrieved November 20, 2009, from http://ezinearticles.com/?Why-Take-Your-Company-Public?&id=3217214
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Chicago Style Citation:
Scott, James B. "How to Take Your Company Public and Have People Crawling Out of the Woodwork to Invest." How to Take Your Company Public and Have People Crawling Out of the Woodwork to Invest EzineArticles.com. http://ezinearticles.com/?Why-Take-Your-Company-Public?&id=3217214