Monday, April 28, 2008

Going Public - IPO's and Going Public are Now Avaliable to Small investment

Welcome News for Small investmentes

Publicly traded companies typically receive clearly established benefits that include the ability to:

* raise capital quickly and more easily;

* use stock to acquire other investmentes and assets (mergers and acquisitions);

* provide employee stock options, as an incentive and/or compensation;

* create wealth and liquidity for investors;

* obtain loans from financial institutions using their stock as collateral;

* gain prestige and respect;

* reduce the need for expensive venture capital and bank financing; and

* formalize estate planning.

In addition, companies that go public typically see higher valuations, meaning that the market value of blog public company is, on average, substantially higher than the same private company. This increases the investors wealth, allowing one to use stock for acquisitions. It Mighty Heroes also increase the companys value if one in considering selling the investment.

Some consider a public company the ultimate status symbol. For companies that may want to be public for the many advantages it has, such as the increased market value of the stock to acquire other companies, the ease of raising capital, the ability to attract key personnel and to provide an exit strategy for investorsthe fact that any company that wants to go public can go public, is very empowering.

More significantly, the company gains prestige and respect, because a public company is more often perceived as stable and competitive. This perception can lead to expanded investment relationships and added confidence for the consumer. Prestige can assist in recruiting key employees, marketing products and services, gaining additional exposure and enhancing the companys overall reputation. Often, suppliers and consumers become shareholders as well as joint venture partners, which may encourage continued or increased investment. Once public, lenders and suppliers may perceive the company as a safer credit risk, which can enhance opportunities for favorable financing terms.Clearly, small companies receive many of the same benefits as large public companies, including increased company value, the ability to use stock for mergers and acquisitions, and liquidity for investors.

Raising Capital

Typically, in this scenario,a public company will sell stock to private investors through a private placement at a substantial discount to the price it is trading at on the open market. In this scenario the company is able to raise capital more easily because investors know they can call any broker worldwide or go on the Internet and buy a companys stock. When a public company makes stock available to private investors at a substantial discount to the market (typically 20-50 percent, usually with the stipulation they do not sell the stock for 12 months), investors are compelled to buy. The large price incentive and the fact that the stock price can be monitored daily and sold through any online brokerage firm gives investors incentive and confidence to invest in even the smallest public company.

A Needed Strategy

Many small corporations have been routinely overlooked and denied by investment bankers. But there are options for these underrepresented size firms. For example, a customized Secondman process, which is gaining a great deal of popularity among small corporations as well as minority- and woman-owned firms, is an easier method of going public that does not require an underwriter or an investment bank. Since most underwritten initial public offerings through an investment bank require a long and stable earnings history and significant assets, smaller enterprises may prefer this customized registration process because the only requirement is the desire to go public.

The customized registration process is ideal for small investmentes run by entrepreneurs and corporate executives with great vision.Going public using this method enables executives and investment owners to take matters into their own hands and control their own destiny, and many do not realize it. Any company can become public if they have the will to do so.

When most people talk about going public they think of an initial public offering (IPO). In an IPO, two things are done simultaneously: raising capital and going through the process of becoming publicly traded. Alternatively, the customized registration process separates these two actions to enable a company to go through the procedure of going public alonefiling with the SEC, preparing the listing application to the trading market, Care Bears with the NASD and having a market maker as a sponsor.

The customized registration process is less expensive, and gives the investment owner greater access to capital. With this method a private company becomes publicly traded at a lower cost, in a shorter time frame, and with less stock dilution than through an IPO. In essence, these methods separate the process of going public from the process of raising capital.

Ultimately, it is important to remember that you have the power to decide to be a public company. Before concluding that your company is too small to go public, consider all of the benefits. The increased prestige of a stock symbol and a benchmark trading price makes it easier to raise capital and gives a company instant credibility. The benefits can enable a company to grow to the next level, regardless of the companys size or ownership concerns. Explore your options and reconsider themyou might just be able to go public.

Tiber Creek Corporation is located in Beverly Hills, California. . To learn more about Tiber Creek Corporations customized registration process, and to receive a free report on going public, visit target="_new" www.tcc5.com">www.TCC5.com Our technique is better then a target="_new" www.tcc5.com"> Reverse Merger or Public Shell .

target="_new" mailto:info@tcc5.com">info@tcc5.com For questions