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Reasons to Go Public?

28/12/2009 by admin

 

If  you are  serious about making your company a success, You must offer aproduct or service to the clients. To build your assets over a hundredmillion dollars. You must go public! You don’t have a choice. If you go publicyou have to battle market manipulations.  Public company survival risks can begreater than for a private company. If your company is a stock scam, yourun the risk of facing criminal charges. The downside to being a publiccompany appears to argue against taking the public path

There are three primary reasons that require you to take your company public:

1. Without liquidity, investors won’t risk their money on your company. Ifthey can’t sell stock, they won’t invest in your company. The ONLY way tooffer investors the ability to sell your stock is to take your companypublic.

2. Stock is money. You can use your strong share price to acquirecash-producing assets for your company. This means you can grow a hundredmillion dollar company in less than five years rather than more than twentyyears.

3. When you sell, you’ll get twenty times more money for your public company than you would for your private company. Public companies sell at Market Capitalization. This is share price times issued shares. Private companies sell for between 80% and 150% of their pretax profit. Crunch the numbers and you will ALWAYS get a bigger “Golden Parachute” owning a public company.

You can solve the serious problems created by taking the public company path.

1. You can cut your costs of going public by 75% to 90% by doing a spinoff,rather than an IPO.

2. You can keep your stock away from the Depository Trust Company. Without “Street Stock,” it’s nearly impossible for anyone to manipulate your share price against the best interests of your shareholders. There are a score oftactics that you can use to stop stock manipulation.

3. You can stop the Vulture Capitalists by requiring them to pay for thestock they take. You should ensure that their payment is a multi-dollarshare price and never pennies. You can force them to sell their stockoutside the United States.

4. Your insiders can avoid being caught in a stock scam by not sellingtheir insider shares. You should Pool & Vault all the insider shares untilyou can sell your company at Market Capitalization. Your insiders will getthe highest price for their stock. Your Investor Relations costs will belower during the public life of your company.

Filed Under: General Tagged With: advantages to go public, Go public, ipo, ipo investment, private company v/s public company, why to go public

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