Services > IPO Consulting
In current market conditions, for the majority of small and medium sized companies going public (IPO) represents an insurmountable challenge.. The opportunity of major European exchanges are only open to large companies supported by leading banks. Small and medium-sized businesses are losing out ever more frequently.
In contrast to Europe, the U.S. offer significantly better opportunities, in particular, for SmallCaps. More than 6,000 SmallCaps are quoted on U.S. stock exchanges, thus going public is already a tradition amongst American small and medium-sized businesses.
This opportunity is created by the more efficient U.S. stock exchange system, which does away with the need for major banks as brokers for flotation. In the U.S., it is much more common practice for interested businesses to instruct a legal practice specializing in IPOs to fully organize going public.
As a result, the company is represented by lawyers to the two sole authorities involved in going public, thereby keeping additional expenditure to a minimum and allowing the company to concen-trate on its actual business. These authorities are: (1) the Security and Exchange Commission (SEC) - the exchange supervisory body responsible for ensuring adher-ence to formal guidelines, and (2) the National Association of Security Dealers (NASD) - the exchange broker's organization responsible for awarding stockbrokerage licenses.
In this way the American system enables a company to go fully public within a calculable time at a realistic cost OTC Consulting Group offers client companies to obtain listing in the USA as quickly as possible. This should occur either through anIPO ) or a reverse merger through a shell, thus receiving the benefit of the following advantages:
Companies have a definitive, transparent value which may serve e.g. as a valuation basis in the case of acquisition. Additionally, the company may issue new shares or new stock in accordance with SEC regulation 144 ("144 stock"), for example, for the purpose of a takeover.
Subsequent to going public the company also has the option of giving employees and managers a suitable stake in the company by way of shares and share options. In the case of a succession process, shares quoted on the stock exchange are a significantly more attractive incentive thanshares in a private company.
Experience has also shown that successfully going public has a very positive effect on the image and marketing of many businesses, a benefit from which private companies do not profit. For example, articles in the financial and economic pages of well known daily newspapers, or interviews about the company's perspective are not unusual and enhance awareness of the business, which as a rule is part of the IR agent's role.
Finally, yet another advantage of going public in the U.S. is the opportunity to open up new markets in North Americawhich in turn offers a clientcompany valuable turnover potential.
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OTC Consulting GmbH
Willy-Brandt-Allee 31a-d
23554 Lübeck / Germany
Tel: +49 (0) 451 - 2803 - 7650
Fax: +49 (0) 451 - 2803 - 7655
information [at] otc-consulting.com
Web: www.otc-consulting.com