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Going Public? Article with little know facts about going public via initial public offering (ipo), direct public offering and reverse merger.
Going Public: Little Known Facts!
√ You do not
need a brokerage firm or
investment banking firm to take
your company public.
Many companies opt to go public through a
direct public offering. In these registered public
offerings, a private company follows the same rules and
regulations that are followed by companies who go public
with an investment banking firm.
√ You do not need to go public
through a reverse merger.
Many companies falsely believe
that they are too small or are not interesting enough to go
public so they decide to go public through a reverse merger
transaction. The truth is that virtually any company can go
public through a direct public offering.
√ You do not need to give up
control of your company.
Senior executives of small to
medium size companies believe that they will lose control of
their company during the process to become public. While
there are additional constraints due to government
regulations and investor demands, it is rare for a company
to give up control. When companies do give up control during
the initial public offering process, they always do so
voluntarily as they have a choice not to proceed with the
transaction.
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