{"id":29829,"date":"2019-08-13T11:51:19","date_gmt":"2019-08-13T03:51:19","guid":{"rendered":"https:\/\/zegal.com\/?p=29829"},"modified":"2021-09-23T13:43:17","modified_gmt":"2021-09-23T05:43:17","slug":"should-i-take-my-company-public","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-gb\/blog\/post\/should-i-take-my-company-public\/","title":{"rendered":"Should I Take My Company Public?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-29830\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/08\/pexels-photo-159888-1024x768.jpeg\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/08\/pexels-photo-159888-1024x768.jpeg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/08\/pexels-photo-159888-300x225.jpeg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/08\/pexels-photo-159888-768x576.jpeg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/08\/pexels-photo-159888-640x480.jpeg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/08\/pexels-photo-159888-1200x900.jpeg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/08\/pexels-photo-159888.jpeg 1733w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><\/p>\n<\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s no secret companies need funding in order to thrive. However, as a company grows, it\u2019s funding needs change over time. Some eventually reach a point where their founders consider taking the company public (also commonly referred to as <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/f\/flotation.asp\"><span style=\"font-weight: 400;\">stock market flotation<\/span><\/a><span style=\"font-weight: 400;\"> in the UK). By selling shares, organisations can raise more money, helping them continue working towards their goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Determining whether this type of<\/span><a href=\"https:\/\/www.fundingcircle.com\/us\/small-business-loans\/\"><span style=\"font-weight: 400;\"> funding for a small business<\/span><\/a><span style=\"font-weight: 400;\"> is the right move requires assessing a variety of factors. In the meantime, the following information will simply help you better understand the basic advantages and disadvantages of stock market flotation.<\/span><\/p>\n<h4>Advantages<\/h4>\n<p><span style=\"font-weight: 400;\">The primary advantage of stock market flotation is access to more capital. Again, as a business grows, its current funding sources may not be enough to sustain continued growth. This is typically one of the main reasons business owners consider going public.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That said, it\u2019s by no means the only benefit of doing so. Selling shares of the company on the stock market also allows businesses to grant shares to various employees. This can help motivate them. Quite simply, when an employee owns shares of the company, they\u2019ll be more inclined to help it succeed. The better the company performs, the more valuable their shares will be.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s also worth noting that stock market flotation is considered to be an effective way to <\/span><span style=\"font-weight: 400;\">attract more attention<\/span><span style=\"font-weight: 400;\"> from both the press and the public. Although all companies can theoretically benefit from an enhanced profile, this is particularly important to small, lesser-known ventures. Having a bigger public profile is often key to accessing business opportunities that would have otherwise been unavailable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, stock market flotation isn\u2019t without its potential disadvantages. You need to be cautious when deciding if this move is right for your company. The points below explain why.<\/span><\/p>\n<h4>Disadvantages<\/h4>\n<p><span style=\"font-weight: 400;\">When you <a href=\"https:\/\/zegal.com\/use-case\/selling-shares\/\">sell shares<\/a> of a company to the public, you suddenly need to consider the interests of shareholders every single time you make a major business decision. Unfortunately, their interests and goals may not correspond with yours.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Perhaps you want to devote a substantial portion of your resources to a project that won\u2019t likely deliver major revenue for some time. In the long run, it may be the right idea for the company, but if it results in short-term quarterly losses, your shareholders might not be happy. This is something you wouldn\u2019t need to consider if you didn\u2019t have any. Additionally, now that you have investors, you need to prioritise investor relations. This means making sure someone on your team is responsible for providing them with essential updates.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You also need to research any fees associated with stock market flotation. Numerous professional costs are often more expensive when you sell company shares.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On top of that, it\u2019s important to remember that the value of a company\u2019s stock isn\u2019t determined solely by its performance. Various factors can impact stock market conditions unfavourably. Everything from public sentiment to poor economic conditions may now affect your company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are all important points to keep in mind as you consider stock market flotation. Again, knowing if this is the right move requires assessing a range of factors. The basic information here will simply help you begin the decision-making process.<\/span><\/p>\n<\/p>\n<p><i class=\"m_-7168080008014476735m_4511505840784017013gmail-sh-color-black m_-7168080008014476735m_4511505840784017013gmail-sh-color\">Rae Steinbach is a graduate of Tufts University with a combined International Relations and Chinese degree. After spending time living and working abroad in China, she returned to NYC to pursue her career and continue curating quality content. Rae is passionate about travel, food, and writing.<\/i><\/p>\n<p class=\"p1\" style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p class=\"p2\" style=\"text-align: center;\"><i>The opinions expressed in the column above represent the author\u2019s own.<\/i><\/p>\n<p class=\"p3\" style=\"text-align: center;\"><span class=\"s1\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/span><\/p>\n<\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/angel-investors-vs-vcs-pros-cons\/\">READ MORE FROM RAE STEINBACH: Angel Investors vs VCs: Pros &amp; Cons<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/five-clauses-every-shareholders-agreement-should-include-does-yours\/\">READ MORE: Five Clauses Every Shareholders&#8217; Agreement Should Include. Does Yours?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s no secret companies need funding in order to thrive. However, as a company grows, it\u2019s funding needs change over time. Some eventually reach a point where their founders consider taking the company public (also commonly referred to as stock market flotation in the UK). By selling shares, organisations can raise more money, helping them [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":29830,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[41],"tags":[7043,6510,16,10307],"usecases":[13689],"businesstypes":[13694],"country":[],"class_list":["post-29829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-funding","tag-legal","tag-sme","tag-startups","tag-z-syndicate","usecases-appoint-an-advisor","businesstypes-consulting-zone"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Should I Take My Company Public? 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