Why Go Public?
Typically, 888 Capital Group serves private companies in the small and mid-tier range with revenues from $5-million to $20-million who want to go public in North America but find it difficult to make the transition in an efficient and timely manner.
Some of the distinct advantages for companies to go public in North America are:
- A public company provides the principals with a viable strategy for wealth creation and the opportunity to diversify their holdings
- A publicly traded company generally has a substantially higher valuation than a private company
- The United States and Canada make up the largest combined financial market in the world making it much easier to raise capital
- Stock options or stock incentives are an attractive inducement for company founders and to retain key employees.
- Once a company is public and established, its stock can be considered as a valuable as cash and can be used in financing mergers or acquisitions
- Although prestige is an intangible, a public company provides a higher success profile, especially important in marketing when communicating with customers, suppliers and investors
- Public companies with a North American presence have easier access to market their products or services
The information in this article was current at 06 Dec 2011