Going Public Service

Benefits of Becoming a Public Company

Access to Capital
A company’s access to capital will increase, since it can contact more potential investors.

Recognition
A company may become more widely known.

Future Financing
A company may obtain financing more easily in the future if investor interest in the company grows enough to sustain a secondary trading market in its securities.

Divestiture
Controlling shareholders, such as the company's officers or directors, may have a ready market for their shares, which means that they can more easily sell their interests at retirement, for diversification, or for some other reason.

Personnel
A company may be able to attract and retain more highly qualified personnel if it can offer stock options, bonuses, or other incentives with a known market value.

Reputation
The image of the company may be improved.
New Obligations
Information A company must continue to keep shareholders informed about the company's business operations, financial condition, and management, incurring additional costs and new legal obligations.

Liability
The company may be liable if it does not fulfill these new legal obligations.

Shareholder Approval
A director may lose some flexibility in managing the company's affairs, particularly when shareholders must approve any actions.

Cost
A public offering will take time and money to accomplish. Only little Costs of Going Public with MapleCanada Business Development