Taking Your Company Public: Dream Or Disaster?

Consider these pros and cons before you decide whether to sell shares to the general public or not.

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Money, Money, Money

The main reason companies decide to go public is to raise money. The capital can be used for research and development, to address new markets or pay existing debt. Besides raising money, you also spread the risk of ownership among a large group of shareholders. You can still benefit from the growth of your company, but with a little less risk.


Credibility And Stability

Going public is a big thing. It is hard to achieve and your IPO is considered a real milestone. This achievement will send a message to the market: this company is able to meet strict federal regulations, which many businesses can’t. It provides a sense of corporate stability and might be useful when you want to attract large partners and customers.


Increased Public Awareness

As said before, an IPO is a milestone and often generates publicity. Hereby, you can make your products or services known to a bigger or new group of potential customers. You will increase your brand awareness, which might make you more interesting for partners and suppliers from another regions who otherwise would not get to know you.


An IPO is a big risk, but if it works out, your business might hit an impressive annual growth rate and it can open many doors for you and your company. Besides the famous stock markets, there are also options for smaller, less-capitalized business, like the Nasdaq Capital Market or AIM, which is part of the London Stock Exchange.

If you are considering raising capital of any type, assessing a value to your business is pivotal. With Equidam, you’ll get a complete financial picture of your company in only minutes! Try out our tool for free and come a step closer to growing your business!


Daisy de Vries is the Marketing & Communication manager at Equidam, an online value management tool for small businesses. Her passions are startups, writing and technologies. Keep investors up-to-date in a consistent and efficient way with the Equidam valuation report. The report gives a clear overview of the performance of your company and enables you and your capital providers to understand and manage the value of your business. Connect with @equidamtweets on Twitter.

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