Going public through a reverse merger or S-1 registration has many advantages for a business owner for companies who have huge growth potential, a large market opportunity and unique product or story to tell and need to access capital markets or create a currency with their stock.
Purpose of Going Public:
- Liquidity - Investing in a public company is much more acceptable by investors then private firms and is a great way for present owners to divesture of their investment
- Value - Public companies are often worth more then private firms. Public companies can experience remarkable growth through stock appreciation.
- Access - A public company has a higher level of access to capital markets and other resources needed for growth. Stock can be used for direct acquisitions.
- Attract - Stock is a component that can be used to attract key employees needed for the growth of the company.
Bring Your Company Public
There are many viable options when positioning a business for growth. Expansion usually requires additional capital; one way to attract interest from prospective investors and funding sources is to bring the company public. Even start-up, early-stage and small businesses can effectively and inexpensively go public via an Alternative Public Offering (APO). In many cases, an APO is more attractive than either the venture capital or angel investment route. APOs are also a cost effective means of going public when compared to a conventional IPO or Reverse Merger (an Alternative Public Offering also eliminates the risks involved with Reverse Mergers).
It is important for the company and business owner to understand that bringing a company public can be a complex and confusing process and expert assistance from those who have the experience can make all the difference.