Initial Public Offering

An IPO in which a company sells its unissued securities and receives all the proceeds in the form of additional capital is called a primary offering. A securities sale in which securities held by the owners of the company are sold, and from which the owners receive the proceeds, is called a secondary offering. IPOs are almost always primary offerings, but may include a small number of shares by the present owners.

• Raise money for expansion of operations
• Increase market value
• Acquire other companies
• Attract and retain employees
• Diversify and liquefy personal holdings
• Implement an estate tax-planning strategy
• Enhance the company’s reputation and immense prestige

Going Public is a monumental decision for any company. It forever changes how a company goes about doing business. The actual process of going public can be time consuming, expensive, and take a substantial amount of key management focus away from the day-to-day operations of the company.   But, an IPO is the cleanest and clearest path to wealth creation and company development.