Sunday, April 3, 2011

Financial Planning: Public company stock is often easier

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

Reduced Costs: The costs are significantly less than the costs required for an initial public offering.

Reduced Time: The time frame requisite to securing public listing is considerably less than that for an IPO.Reduced Risk: Additional risk is involved in an IPO in that the IPO may be withdrawn due to an unstable Nike Blazer Low, condition even after most of the upfront costs have been expended.

Reduced Management Time: Traditional IPOs generally require greater attention from senior management.

Reduced Business Requirements: While an IPO requires a relatively long and stable earnings history, the lack of an earnings history does not normally keep a privately held company from completing a reverse merger.

Reduced Dilution: There is less dilution of  Nike Shox TL1 control, compared to a traditional IPO.

Reduced Underwriter Requirements: No underwriter is needed: (a significant factor to consider given the difficulty companies face in attracting an investment banking firm to commit to an offering.)

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