Going Public

At some point, you may determine that you wish to obtain capital from investors rather than borrow from lenders. You may, therefore, consider having your business conduct a public securities offering. Each year, many private businesses go public. According to Chris Meyer, analyst for Morgan Stanley, in 2005 there were 1,600 initial public offerings (IPOs) valued at $170 billion, and in the first half of 2006, there were 745 IPOs valued at $103 billion. However, some small companies that went public have become disillusioned and are returning to their former private status. It is worthwhile to look at the pros and cons of going public and some of the factors you should consider before making that crucial decision.