Operating as a private entity has its advantages. But maybe going public is just what your company needs to take it to the next level. After reviewing some of the advantages that are currently being enjoyed by many public companies, you may decide that going public is the answer for your organization. But what are the different methods? After all, not all companies go public through the popular Initial Public Offering (IPO) method used by large investment banks. In fact, more companies go public using lesser known methods such as the reverse merger.

Benefits of Going Public

• Increased liquidity
• Exit strategy and incremental liquidation
• Increased market value
• Ability to utilize the currency of publicly traded stock to: (a) Issue stock for acquisitions as opposed to paying cash or securing bank loans; (b) Issue stock to negotiate with creditors-by retiring debt for equity; (c) Issue stock for services in lieu of cash payments, and (d) Issue stock as bonuses to attract key employees.
• Improved exposure
• Ability to establish and keep long-term relationships with suppliers and customers who become stockholders.
• Access to the public "well" of capital
• Ability to place a value on ownership for estate and tax planning purposes
• Increased prestige