Become a publicly held company, either via reverse merger or IPO, is a hallmark event. Firms can gain significant advantages from going public:
- Enhance prestige, brand awareness, credibility and pubic image
- Create significant wealth for the founders and original investors
- Gives investors confidence that they are dealing with an SEC Reporting Public Company.
- Present much higher value as a public company than its private counterparts. While private companies are usually valued at five to seven times of their earnings, public companies are mostly start at 25 times.
- Become a more liquid and diversified share capital base for potential exit strategy, future acquisitions of other business, etc.
- Broader and easier access to investment and capital raising sources at lower cost. Company can return to public markets for additional capital, or negotiate a favorable term with private investors
- Reduce the need for venture capital and bank financing
- Grow your business through mergers and acquisitions
- Attract, retain and reward talents with share and share options benefits and compensation, while keep salaries reasonable
- Bring in experienced and reputable experts on board
- Reverse merger potential