Companies go public for a number of reasons, and these reasons can be different for each company. Some of the reasons include:
· To raise capital and potentially broaden opportunities for future access to capital.
· To increase liquidity for a company’s stock, which may allow owners and employees to sell stock more easily.
· To acquire other businesses with the public company’s stock.
· To attract and compensate employees with public company stock and stock-options.
· To create publicity, brand awareness, or prestige for a company.
Before deciding to become a public company, there are important factors to consider:
· Your company’s public offering will take time and money to accomplish.
· Your company will take on significant new obligations, such as filing SEC reports and keeping shareholders and the market informed about the company's business operations, financial condition, and management, which will take a significant amount of time for your company’s management and result in additional costs.
· Your company and you may be liable if these new legal obligations are not satisfied.
· You may lose some flexibility in managing your company's affairs, particularly when public shareholders must approve your company’s actions.
· Information about your company, such as financial statements and disclosures about material contracts, customers and suppliers, will become available to the general public (including your competitors).
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Public Raise specializes in helping small and medium-sized businesses raise capital legally through online channels. This expertise extends to businesses that serve consumer retail, real estate, technology, financial services/fintech, and energy. Contact us to learn more about raising capital.
Disclaimer – Public Raise performs no underwriting function and acts solely on behalf of a client company in providing in-house financial advisory and investor marketing services. Although the consulting services of Public Raise may include general advice and consultation regarding general legal topics relating to the consulting services to be rendered, particularly with respect to areas of financial expertise of Public Raise the services rendered by Public Raise do not include the rendition of professional legal services or any specific legal service, advice or consultation by any affiliate of Public Raise. Public Raise is not a Broker Dealer or registered with FINRA or the SEC. Public Raise will not accept broker success fees or commissions for raising capital.
David Lee, who is the Founder of Public Raise, is also a Managing Director and Registered Representative of Netshares Financial Services, LLC ("Netshares"), an SEC registered broker-dealer. Any activities of Public Raise, its employees, or the Management of Public Raise, which is conducted in connection with or set forth in this website is not in any way related to the position of an affiliated person of Netshares. The Management of Public Raise and its business are separate and independent of Netshares and is not part of the business conducted by Netshares and any representation to the contrary is false. Netshares has no responsibility or liability for the activities of Public Raise, its employees or the Management of Public Raise, or any representations made in connection with or set forth in this website.
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