Many entrepreneurs have found going public to be incredibly rewarding – for their companies and for themselves.
There are many benefits of going public for a company such as increased valuation, the ability to use public stock as currency for acquisitions and assets, increased valuation, increased prestige and to reduce the need for expensive venture capital and other financing sources. Below are a few of the biggest benefits of going public.
We know that completing a successful financing is often a critical step in completing a reverse merger. Therefore, we have developed ten important guidelines for attracting growth capital.
Public companies are normally valued higher than private companies.
Founders suffer less stock dilution when raising capital.
Making acquisitions with stock is easier and less expensive.
Stock and stock options are useful in attracting management.
Management and employee stock options have more value.
More liquidity for founders, minority shareholders, and investors.
Added prestige and visibility with customers, suppliers, employees and the financial community.