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Phil Holland Founder, My Own Business What are the benefits to becoming a publicly owned company? |
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| One final option you have in growing your business and this can be a long range goal for you would be to take your company public, to become a publicly owned corporation. There are some great advantages in that. For one thing it would place a value on your company that is determined by the market. It will give you enormous opportunities for more capital, for further growth and for lending power from the banking community. You're also getting into the level of operation that could make you an attractive candidate for acquisition by other larger public companies. There are some other benefits; one benefit is that you will be able to use stock options and stock incentive plans to incentivize your key employees. You will be able to encourage the recruitment of new management and employees that as a public company they can look forward to for longer range for growth potential in their own careers. Another reason for public ownership would facilitate and make easier your own exit strategy because now there is already a public determination of the value of the company so there may be some reasons worth considering into your long range plans. | |