How to Go Public with Your Company
Going public with your company is not a shame; instead most businessmen are doing this to take their companies to a higher level. Of course, in order to expand the score of business, more and more funding is need and it is often difficult to take such a huge amount of money out of your pocket. On the other hand, if we consider taking loan from a financial institution, it will add considerable risk to your business and savings of whole life time while going public eradicates all these problems.
Instructions
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1
If you have decided to take your company public, you will have to hire an underwriter, attorney and accountant as these all are a must in order to accomplish the task. In order to take the company public, the management decides the number of shares to be sold and the selling rate for these shares. If a company is doing it for the first time, then it is called Initial Public Offering (IPO). Nevertheless, an underwriter is someone that agrees to purchase all the remaining shares that are not bought by the audience. You will need attorney for the legal purposes while an accountant will serve help maintaining everything.
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2
The decision to take the company public cannot be made overnight and requires vigorous planning and precautionary measures. Thus, it is important that the higher management primarily directors of the company should have an extensive meeting with all of the abovementioned personnel to decide goals and terms of the agreement with them.
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3
The firm should starting making a draft of the prospectus and hire an auditor to perform the audit of the financial records of the company as it is a must for a company to go public.
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4
You must ensure that all the rules and regulations formed are in complete accordance with the SEC laws and nothing is left behind.
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5
After the prospectus is complete and thoroughly reviewed, it should be submitted to the SEC along with the registration dues.
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6
After the prospectus is accepted by SEC, you must take its print outs and deliver it to your potential investors as no investor considers risking his money without knowing about the detail and financial records of the company.
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7
You must come into agreement with your underwriter.
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8
Now you should advertise in newspapers and other prominent mediums about the IPO of your company and do not forget to mention the opening and closing date.
