Advantages Of Listing

There are many advantages of taking a company public or listing on an exchange. Some of them are noted:

  • Increased Valuation: Typically publicly traded companies enjoy substantially higher valuations than private companies.

  • Capital Formation: Raising capital is usually easier because of the added liquidity for the investors, and it often takes less time and expense to complete an offering.

  • Acquisitions: Making acquisitions with public stock is often easier and less expensive.

  • Incentives: Stock options or stock incentives can be useful in attracting management and retaining valuable employees.

  • Financial Planning: Public company stock is often easier to use in estate planning for the principals. Public stock can provide a long term exit strategy for the founders.