What are the advantages of going public?
Significant Increase In Valuation
Short-term, going public can increase business valuations substantially, often by 300% to 500% or more. This is because publicly traded companies are valued based on future earnings, provide investors with a path to liquidate their investment, provide a high level of business disclosures which make investors more comfortable, and have unique ways to prevent a total loss of business value.
Long-term, public company valuations are substantially higher because the entrepreneur can use their stock, options and warrants to complete acquisitions, attract the best talent, close more deals and raise capital more easily, which amplifies their effort, accelerates their growth and enables smart entrepreneurs to create more value.
