Atlas Advisors, LLC specializes in assisting companies in "Going Public" in the United States.
Our services include going public, private placement preparation and public-company reporting.
We have considerable knowledge and experience in aiding companies in becoming publicly traded. Our understanding of these transactions assures that you will have the finest assistance available in achieving your goals and objectives.
The most common way of going public is through an underwritten public offering. The underwriter seeks subscriptions to purchase the company's shares. If the subscriptions are sufficient, the underwriting becomes "firm". The initial public offering (IPO) is then closed, the company is public, and the company receives its portion of the offering proceeds.
Though initial public offerings are perhaps the most sought-after form of financing, the fact is, surprisingly few companies can hope to successfully negotiate their way through the process.
The truth leads to a Catch-22. Many promising small companies cannot obtain funding because they are private. However, without funding, they can't hope to grow to the size and scale that would allow them to go public.
Why is being a private company anathema to the capital-formation process? Because many investors are reluctant to invest because they believe that even if the company does well, without an exit strategy, they may never recoup their investment.
Investors frequently talk about "exit strategies," a fancy way to say "cashing out." Specifically, once investors put money into a company, they want to know how they can get their money back -- at a profit. A public company offers them this exit strategy.
Taking your company public
We work as members of a clients strategic team, offering our knowledge and skill in assisting you in becoming a publicly traded company.
Our capabilities, resources and relationships in the financial communities allow us to provide a full range of services. We maintain relations with underwriters, broker-dealers, market makers, merchant banks and other financial institutions.
Our A to Z Turnkey Go Public Program
We provide a comprehensive program. Our service is designed to assist you through each stage of the process. From start to finish we will be with you from initial assessment and implementation until the process is complete. Our resources and industry expertise ensure the stage is set for a robust and dynamic public company. If you are considering going public. Contact us to learn more about our services.
Becoming public without an underwritten offering has the following benefits:
There are many benefits to being a public company.
Some of the most compelling advantages can include:
1. Access to capital
Money raised can be used for a variety of purposes including; growth and expansion, retiring existing debt, corporate marketing and development, acquisition capital and corporate diversity. Once public, a company's financing alternatives are greatly increased. A publicly traded company can go to the public markets for capital via stock or bond issue, and may also convert debt to equity.
Ownership of stock in a public company may help the company's principals to borrow more easily and eliminate personal guarantees. Liquidity can also provide an investor or company owner an exit strategy, and portfolio diversity. Liquidity is one of the many reasons why public companies are typically valued so much more than a private company.
3. Mergers and Acquisitions
4. Increased Valuation
Investors in a private company will discount the value of its equity securities by reason of their "non-liquidity" - the lack of a ready, public market for them. Thus, public companies often are valued so much greater than private, similar companies in the same industry. The availability of other alternatives to raising capital permits a public company greater leverage in its negotiations with both institutional and individual investors. Many institutional and individual investors prefer investing in public companies since they have a built-in "exit," that is, they can sell their stock in the public market. Many companies that were private and about to be purchased went public to be purchased at a much higher price.
A stock plan for employees demonstrates corporate goodwill and allows employees to become partial owners in the company where they work. An allocation of ownership or division of equity can lead to increased productivity, morale and loyalty. This type of compensation is a way of connecting an employees financial future to the company's success.
A company's founders, co-founders and managers gain prestige from being associated with a public company. Prestige can bevery helpful in recruiting key employees, marketing products and services to your target market. When sharing ownership with the public, you enhance the company's reputation and increase its business opportunities. Your company can gain additional exposure and become better known.
Often a company's suppliers and consumers become shareholders as well as joint venture partners, which may encourage continued or increased business. Once public, lenders and suppliers may perceive the company as a safer credit risk; this will enhance the opportunities for favorable financing terms. Indeed, the suppliers' and customers' perception of company success is often a self-fulfilling prophecy. Many people have called it the ultimate status symbol.
7. Personal Wealth
A public market for stock provides a potential exit strategy and liquidity to the investors. A psychological sense of financial success can be an added benefit of going public. A public company can enhance the personal net worth of a company's shareholders. Even if a public company's shareholders do not realize immediate profits, publicly-traded stock can be used as collateral to secure loans. Many feel it makes sense at an appropriate time for investors and entrepreneurs to cash out some of their equity in order to diversify their holdings or to enjoy life. Employees and officers have two ways to add to their wealth: by receiving a salary and selling stock or trading the stock for another type of asset.
8. Estate Planning
The publicity received from being public can encourage investments from the public, new business development and strategic alliances. Analyst reports and daily stock market tables contribute to further awareness by consumers and the financial community. By virtue of being a public company your company's story can more easily get out to the world. This allows for investors who would not invest in private companies but will invest in public companies to find out about your company.
The publicity that a public company may receive can attract the attention of potential partners or merger candidates. Because the financial condition of a public company is subject to the scrutiny of the Securities and Exchange Commission reporting requirements, existing or future business relationships are strengthened. Many private firms do not appear on the radar screen of potential acquirers. Being public makes it easier for other companies to notice and evaluate your company for potential synergies.