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Benefits of being a Public Company
- Regular and on going access to public markets to raise money
- Stock option plans provide cash compensation to directors, officers and are an excellent tool for recruiting and holding key employees
- Ease of raising capital because shares of a market value that establishes its price and can be traded by investors
- Increased liquidity for the owners of the company.
- Higher share price and thus higher company valuation than if the company were private
- The use of stock to pay debt, settle disputes, and acquire assets.
- Part of a retirement strategy for business owners.
- Considerable tax advantages are available through the Reverse Mergers, and proper exit strategies.
- The market value of a public company is substantially higher than a private company with the same structure in the same industry.
- The trading price of the public company's securities serves as a benchmark for the offer price of a subsequent public or private securities offering.
- Acquisitions can be made with the stock since publicly traded stock is viewed as currency for mergers and acquisitions.
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