When it comes to planning, applying and managing every aspect of the process by which your private company becomes publicly traded, Public Financial Services can perform it for you. The company's experience and triumph with this type of transaction can enable your executives to maintain their concentrate on the issues important to your business while the company's team focuses on all the information related to going public. As a result of their services, going public dealings can be completed with nominal disruption to your current business in a timely mode and at a fair cost.
An initial stock offering is a transaction whereby an investment banking firm raises investment capital and takes a private company public and since investment bankers earn large fees based upon the amount of capital raised, they need to make sure there is significant public interest before they will represent a private company. Investment bankers are mostly drawn by large or well known companies.
Various advantages of these are: Significant access to investment capital; Credibility as a result of the support and sponsorship of an investment banking firm; Professional advice all through the transaction; Some stock price support after the private company is publicly listed; Analyst coverage and research reports to help keep the public informed. On the other hand, there are disadvantages as well, and these includes: Extra dilution from investment banker pressure to price shares low so that more capital can be raised; Success is subject to the investment banker and market situations; Costs much more than a initial stock offering and often more than a reverse merger, excluding the cost of commissions; Significant requirements from management for meetings, conference calls and road shows; Accounting fees, legal fees, professional adviser and filing fees are mainly dependent on the size and complexity of each transaction. Generally, fees will cost several hundred thousand dollars to much more than a million dollars and financing fees are priced based on the amount of funding raised by the investment banking firm.
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