Exempt Offerings  JOBS Act Solutions

advising on exempt offerings to find investors.  

Public Company Advantages:

  • Mergers and Acquisitions: Public stock of a company can be used for businesses to grow through acquisitions.

  • Higher Valuations: Public companies are typically valued more than private companies.

  • Benchmark Trading Price: The trading price of a public company's stock serves as a benchmark for the offer price of other securities.

  • Incentives: Stock options can be helpful in attracting employees.

  • Less Dilution: There is less dilution of ownership control compared to an IPO.

  • Reduced Underwriter Requirements: No underwriter is needed.

  • S-8: Form S-8 stock can be issued to employees and consultants by a public company.

  • Liquidity: A public company provides liquidity for management, minority shareholders, and investors.

  • Use as estate planning tool.

  • Broker-dealers and their clients may want to buy stock.
    • Prepares the market for a later public offering.

    • Management and initial shareholders of the private company can have their stock in the registration statement company. This can allow them to later sell their securities in the public market.

    • The market value of a public company is usually greater than a private company in the same industry.

    • It is easier to raise capital for a public company that has a market value and is tradable.

    • The public trading price of the stock of a public company serves as a benchmark for the offer price of a future public or private offering.

    • If the offering also includes warrants, the new company can receive proceeds from the exercise of such warrants if the trading price of its common stock exceeds the exercise price of warrants. This is another way that a company can raise capital.

    • If it’s a foreign company, it may not want to become a U.S. company because, as an overseas company, it can have its securities traded on a U.S. stock exchange without requiring a US corporation or subsidiary.

    To get started or just to ask questions, email [email protected]Douglas Slain can be reached directly at 415-317-6130.