Do not underestimate the importance of the increased prestige and standing you and your company will enjoy as a result of successfully going public in theU.S.capital markets.
You will gain prestige by creating a perception of stability. You and other members of management will gain significant personal prestige from being associated with a company that successfully goes public in theU.S.capital markets.
By going public in theU.S.capital markets, your company can gain additional exposure and become better known. This can help in marketing goods and services. Increased credibility may mean increased customers and revenues. This can be helpful if you are in an industry where customers and suppliers must make long-term commitments.
Once public, lenders and suppliers may perceive the company as a safer credit risk, enhancing the opportunities for favorable financing terms.
Going public in theU.S.capital markets increases your public presence in that you are more likely to receive the attention of major newspapers, magazines and periodicals than a private enterprise. Going public in theU.S.capital markets can get your company’s story out to the world and open an opportunity for potential future customers or strategic partners.
Accomplishing this task will make you stand out above other similar entrepreneurs in your region. You have done something that your competitors and other companies in your region have not. You may be able to leverage this into tax benefits and other incentives from the government. You may also be able to get banks and other lenders to lend you money because of your credibility and prestige. In addition, your publicly traded stock may be more acceptable as collateral to secure loans. Your increased prestige may translate into increased sales or strategic business alliances.
However, as many China Reverse Merger companies have discovered, going public with a reverse merger with a public shell may in fact end up destroying your company’s prestige and standing. Why? You don’t go through the rigorous SEC review process, which can lead to substantial problems down the road.
Going Public in a Go Public Direct transaction puts your company on firm ground with the SEC before you enter into the public arena. All of your future required public filings like 10-K’s and 10-Q’s are based upon disclosure that has been thoroughly vetted by the SEC in the review process.