Private companies can go public through an initial public offering, reverse merger or direct public offering. But why go public at all? There are many advantages of taking a private company public. Management of publicly traded companies can sell stock to raise investment capital or acquire other companies more easily, quickly and with less dilution than if they remained private. They can also more easily issue options with actual or perceived value to attract and retain employees and third-parties. Public companies tend to be more newsworthy and have higher levels of trust with customers, suppliers, employees and investors. For all these and other reasons, publicly traded companies tend to trade... 

Private companies often go public to attract investment capital to develop and expand their business. However, small to medium size businesses often lack several of the characteristics investment banking firms require before agreeing to represent them in an initial public offering. As a result, many privately held companies turn to a direct public offering (essentially, an initial public offering without an investment banking firm) or a reverse merger (a transaction where the private company merges into a publicly traded company). After a private company completes the going public process and has a stock symbol, it becomes much easier to capture the attention of individual and institutional investors.... 

Every company that goes public believes it will grow and increase its share value. Often, companies run into trouble; they can run out of funding, have production problems, distribution problems, management/employee problems, lawsuits, etc. So what happens when a public company goes “out of business”? Good question. In many cases, these defunct companies maintain their public trading status and become “shell” companies.  

The process to go public via initial public offering (IPO) or Direct Public Offering (DPO) follows a prescribed path. While some elements can be handled simultaneously, there are a number of parts that must be done sequentially. As a result, it will often take between six and nine months for a private company to go public. We have highlighted the major time elements to provide a basic understanding of the process.  

There are three ways to go public: - Initial Public Offering (IPO) - Direct Public Offering (DPO) - Reverse Merger A description on each follows.  

The process to go public via initial public offering (IPO) or Direct Public Offering (DPO) involves a variety of steps. We have highlighted the major components to provide a basic understanding.  

If given the choice between going public through a reverse merger and staying private, there is no question we would opt to stay private. Companies who enter into reverse merger transactions often do so without a complete understanding of the real costs and issues. For example:  

Initial public offering can be an excellent way for a corporation to raise a large amount of capital.  In an initial public offering, a corporation’s shares are made available to the general public, thus providing a substantial influx of cash.  The term applies only the first of such offerings, and any later offerings are referred to as secondary market offerings. The benefits of an initial public offering are numerous.  In addition to the financial gains, a company that decides to go public will also increase their public awareness and credibility. Since public companies are more carefully and closely monitored than private companies, many investors feel that that they make for more stable... 

√ 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...