Why should a company go public?

Some of the reasons include: To raise capital and potentially broaden opportunities for future access to capital. To increase liquidity for a company’s stock, which may allow owners and employees to sell stock more easily. To acquire other businesses with the public company’s stock.

What should a company consider before going public?

Things to Consider Before Going Public

• Is the timing right in your company’s industry? …
• Does your company have enough money to make a successful IPO? …
• Is your company willing and able to fully commit to an IPO? …
• Can your company afford the distraction of an IPO? …
• Is your company set to look like a star performer?

What are the pros and cons of going public?

The Pros and Cons of Going Public

• 1) Cost. No, the transition to an IPO is not a cheap one. …
• 2) Financial Reporting. Taking a company public also makes much of that company’s information and data public. …
• 3) Distractions Caused by the IPO Process. …
• 4) Investor Appetite. …
• The Benefits of Going Public.