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.