What to do if Your Company Wants to Go Public

Should a company decide to go public, the process can take anywhere between four to eight months. The first step is to file a registration statement with the U.S. Securities and Exchange Commission, information potential investors on uncertainties, trends, and financial performance. A company cannot sell securities covered by a registration statement until the SEC declares it “effective.”

How to Raise Capital

A company can try to sell stock in a private transaction, which seeks the same type of investment as an IPO but on a more limited scale. The option to raise debt capital also exists, which would involve selling bonds. Bond offerings are sometimes faster than a stock offering. Selling a piece of the company is an option if the owners are willing to give up control.

Reasons To Go Public

Traditionally, a company’s goal when deciding whether or not to make an initial public offering is to access capital. There are a number of alternatives to raising capital, however, if a company is not ready to go public.

IT Companies Austin

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Now With the 506c Rule

FD Financial is a consulting firm that specializes in small business marketing to find accredited investors and offering structures from one million to five million dollars.

Now your small business does not have to be a  publicly traded company to offer and raise millions of dollars from the general public. The Securities and Exchange Commission took some long-awaited action in the area of private offerings at its open meeting on July 10, 2013. The Commission issued two releases adopting final rules that will allow businesses to publicly advertise their needs to raise capital.   These measures were undertaken to comply with mandates in both the JOBS Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Read more about the Rule 506 General Solicitation or Advertising changes.