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Should You Take Your Company Public This Year?

Successful businesses in Houston, Galveston Island, Montrose and throughout the state of Texas may wish to consider going public. According to Nasdaq.com, there were more than 2000 IPOs by September 2014. Over the course of last year, there was a 41 percent increase in the number of companies going public as compared within 2013.  More companies went public in 2014 than at any time since the year 2000 and the IPOs over the course of the year raised $67 billion. By September, this was already 23 percent more money raised than during all of the prior year.

Going public is not something that every company can do, and if you are considering it at any time in the future, you need to talk to a business law lawyer in Texas very early in the process so you can make sure you take the essential steps to prepare to launch an IPO.

Should You Consider Taking Your Company Public?

With the new business year getting started, if you have a successful company then you may want to think about moving towards an IPO. There is a lot to consider when deciding if you should take your company public. Entrepreneur.com highlighted some of the questions to ask yourself when deciding if going public is a viable option for your business:

  • What is the value proposition that your company can offer? Your company will have a successful IPO only if it can capture the attention of Wall Street investors. It is a good idea to see whether any of your competitors have gone public and to see how their shares performed. This will give you an idea of what successful companies in your industry have done to show growth prospects and tempt investors.
  • Do you have a financial staff that knows IPOs? There are very strict reporting requirements established by the Securities and Exchange Commission. If you plan to go public, it is a good idea to hire a general counsel that has experience with the SEC reporting requirements.
  • Do you have a good board of directors? When you are a publicly traded company, your board of directors may be thrust into the spotlight. You may be required to have independent board members and have different board committees that have responsibility for different tasks within the company.
  • Are you prepared to be transparent? Publicly traded companies face much more pressure regarding disclosure and transparency. You also need to be careful about how you publicize information that may affect the price of your stock. This has become a lot more complicated in the age of social media.

These are just a few of the key things that you will need to think about when you decide whether to consider taking your company public or not. The decision to launch an IPO needs to be made in consultation with financial experts and a good lawyer. '

Contact a business law attorney in Texas. Call Brewer & Prichard P.C. today at 800-445-8710 or visit https://www.bplaw.com to schedule a consultation. Serving Houston, Montrose, Galveston Island and surrounding areas.