The Pros and Cons of Going Public

Released on: May 27, 2008, 4:56 pm

Press Release Author: Terry White

Industry: International Trade

Press Release Summary: The going public process is an expensive consideration, and
even more so for small cash-strapped young companies. When a company is
contemplating the process of going public, it must consider the pros and cons
involved in making that decision.

Press Release Body: Beverly Hills, CA May 27, 2008 -- The going public process is an
expensive consideration, and even more so for small cash-strapped young companies.
When a company is contemplating the process of going public, it must consider the
pros and cons involved in making that decision. Additionally, there are new
responsibilities involved when a private company becomes a publicly traded business.
Although many benefits can ensue from going public and the related IPO services, the
company directors and principals must critically judge all the options and impending
tasks of becoming a public company.

The following are pertinent considerations that need be touched upon with the help
of an experienced securities attorney; he can help your company evaluate the
advantages and disadvantages of an Initial Public Offering (IPO). The following
analysis is in order to help you make a decision that is best suited for your
The Going Public process, what is it and is it Right for Your Business?
Once a private company becomes publicly traded, it will register securities so that
it can make an offer and sell them to the investing public. This is the biggest
difference in operational status of a private vs. public company: The public company
can offer its stock to the public at large, whereas the closely held private company
is restricted to private venues, such as friends and family members. This is a very
important consideration since most companies that go public are interested in
raising capital. Furthermore, investment bankers and broker-dealers prefer to deal
with a public company. A well ran private company with a healthy bottom line,
quarter after quarter, is an excellent candidate to go public and attract outside
investment capital.

The Main Advantages of an Initial Public Offering (IPO)
The increased capitalization for the issuing business is a strong point to consider,
since a public offering creates a market value on a company\'s stock. Company
directors and shareholder can retain their stock and use it for varied activities,
such as: currency for mergers and acquisitions, as stock options to help retain key
personnel, they may also sell their shares in the open market. Additionally, the
business will have greater access to the capital markets for future capital inflow.
In general, terms, a company\'s valuation and debt-to-equity ratio will improve after
going public, making it possible for the company to receive much better terms from

Undertaking IPO services and offering securities to the investment public will help
a company's management and directors retain a large degree of control. For example,
if a private company decides to use the services of venture capitalists to raise
capital, instead of going public, the VC's (Venture Capitalists) might insist on a
decision-making position, such as a seat on the board of directors. When a company
decides to raise capital via the going public process, those unpleasant
considerations are avoided.

No doubt, the prestige related with becoming a public company has a definite appeal.
The fact that it is easier to promote a public company is also a pertinent
consideration. Public companies have historically achieved higher recognition than
private companies; hence, the public relations image and the perceived stability of
being a public company is a plus.

Are there Disadvantages to Going Public?
Some of the typical expenses associated with taking a company public include fees
for legal and accounting services. Of course, the SEC (Securities and Exchange
Commission) quarterly and yearly reporting requirements are a burden for most
companies, if trading on the OTCBB, NASDAQ, etc

Is There an Easier, Better Way to Go Public?
The easiest way for most companies to go public is to be listed on the Pink Sheets.
Going public via the Pink Sheets is an excellent first step for smaller companies to
become publicly traded entities. Here are some further advantages:
. There are no reporting requirements
. There is no time in business requirement
. No revenue or earnings requirements
. No minimum asset requirement

For a more in depth study of all going public processes, and to learn how to take a
company public, please visit The price to go public is usually
$100,000 and the services are offered by the president of Tiber Creek, a going
public services attorney in business since 1975.

Web Site:

Contact Details: Tiber Creek Corporation
9454 Wilshire Blvd., 6th Floor
Beverly Hills, CA 90212
310.888.1870 tel.
310.888.1856 fax
info (at)

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