Pros and Cons of Startups Doing IPO

Large companies that have run their business with excellence and earn stable profits will eventually be faced with the choice to go public or other stock or securities offering activities carried out by the issuer (company) to sell shares or securities to the public. The move has previously been taken by tech giants such as Google (GOOGL) and Apple (AAPL) which have listed their companies on the NASDAQ stock market index.

Before you plan to conduct an initial public offering (IPO), or initial public offering, it's a good idea to look at what's going on right step to be taken, the advantages and disadvantages of an initial public offering of shares.

How to do IPO

It takes a long time and a long process to start an initial public offering of a company's shares, including collecting detailed information as well as the data needed to be completed together with the related forms and files. After that, you are also required to take part in a series of interviews from the bank to other related parties who will determine what the right value is for the company.

IPO Benefits

After the Go Public is carried out, the company will get huge profits, starting from growth that can reach 20% and of course the potential to bring in a lot of income every year. Public companies can use secondary stock offerings to raise money without having to borrow. It is easier to get funds and loans from private sources.

Existing share rewards can be used to attract and retain core employees. The company will directly get more prestige and performance if it has conducted an IPO. Going public can also provide great benefits for entrepreneurs, venture capitalists and other business partners, after years of building successful businesses.

Loss of IPO

IPOs involve an enormous time commitment that has the potential to distract business owners from other strategic priorities. But what is more important to observe is to do go public requires a large amount of money.

Costs and time commitments must also be carried out on an ongoing basis after the company is officially listed on the stock exchange market. You are also required to provide periodic financial reports that are publicly announced. For this reason, you as the owner of the company and other levels of management are obliged to pay attention to every step taken after the initial public offering is made.