What Are The Advantages And Disadvantages Of Going Public With Your Company?


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Mehreen Misbah Profile
Mehreen Misbah answered
When a company decides to go public, the very decision has its share of benefits and setbacks. The entrepreneur, before taking such a big decision should always weigh the pluses against the minuses and should always take the final step in accordance.

Regarding the advantages of going public, the first one is the increased ability of the entrepreneur to obtain equity as there will be a greater scope of opportunity for that matter. Not only the ability to obtain equity enhances but also does the prospect of borrowing from various sources as going public does enable the company to earn a higher level of credibility. In addition to that, liquidity of a company augments as well as a result of the added funds that have started flowing in. Prestige of the company is another matter of positive nature when it comes to the idea of going public.

As for the disadvantages, loss of control could be termed as a strong one. Not behind the first one is the prospect of disclosure of the company's confidential information, which it has to undergo as a requirement of going public. Moreover there will be a pressure from authorities to maintain certain growth patterns and for that reason, expenses will elevate in turn. There would always be an increased risk of liability along with the pressure of abiding by government rules and regulations as repercussions of going public.
Edward Myers Profile
Edward Myers answered

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