Why Go Public?

Have you ever wondered whether or not you should take your company public. There are many reasons for and against doing so. In this article, I’m going to share with you the reasons why I think you should consider taking your business public.

First off, management in publicly held companies is generally compensated at a higher level than management of private companies. Think about this one – your company obtains increased prestige and visibility.

Also, by going public, the company will improve its financial condition by obtaining outside money. Company stock in the form of stock options can be offered to employees and contractors as a meaningful form of incentive compensation.

The public market for the company’s shares provides an irrefutable valuation of the company on a daily basis. Shareholders of the company also benefit from holding shares that are, subject to certain restrictions, freely marketable and usable as collateral for loans.

Shares that are publicly traded generally command higher prices than shares that are not publicly traded. Shareholders are also able to diversify their investment portfolios, due to the increased marketability of their shares.

Management personnel upgrade their experience and employability by having served in responsible executive positions in a publicly held company. Just think about it. The Stock in the company can be used in part to finance acquisitions of other companies (i.e. part of the purchase price can be paid in stock).

These aren’t all of the reasons to take your company public, but it should be enough to at least consider it.

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When you need legal help to take your business public, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael Anderson

People who want a lot of Bull go to a Butcher. People who want results navigating a complex legal field go to a Lawyer that they can trust. That’s where I come in. I am Michael Anderson, an Attorney in the Salt Lake area focusing on the needs of the Average Joe wanting a better life for him and his family. I’m the Lawyer you can trust. I grew up in Utah and love it here. I am a Father to three, a Husband to one, and an Entrepreneur. I understand the feelings of joy each of those roles bring, and I understand the feeling of disappointment, fear, and regret when things go wrong. I attended the University of Utah where I received a B.A. degree in 2010 and a J.D. in 2014. I have focused my practice in Wills, Trusts, Real Estate, and Business Law. I love the thrill of helping clients secure their future, leaving a real legacy to their children. Unfortunately when problems arise with families. I also practice Family Law, with a focus on keeping relationships between the soon to be Ex’s civil for the benefit of their children and allowing both to walk away quickly with their heads held high. Before you worry too much about losing everything that you have worked for, before you permit yourself to be bullied by your soon to be ex, before you shed one more tear in silence, call me. I’m the Lawyer you can trust.

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