burn thought this would be of interest to the board here'
here is something that should be looked at righ (budgenius is a publicly traded company. yes we have a large share structure here . the reason for that is the company cleaned up old debits from the past management. now that we are free of debit from past management we can move forward here. the company could have done a reverse split here but in stead they are doing a buy back of there stock witch is in the best interest of investors here. the company is growing on a daily bases. here is why a company goes public to start with. this whole post is just my opinion on the mattter.
here is the article
Why Go Public?
There are a number of reasons to take your company public.
Definition: The process of registering a company's shares of stock with the Securities and Exchange Commission and offering the stock for sale to the public.
Going public has many benefits for your company that can't be obtained by staying private.
Some of the most compelling advantages include:
Access to Capital:
A public offering of stock can vary from as little as $500,000 to over $1 billion. In 1999, 544 companies completed an IPO (Initial Public Offering) with an average offering size of $87.2 million. The total capital raised from these offerings was $23.6 billion. By offering stock for sale to the public, a company can access a substantial source of corporate funding. If a company needs to raise capital, it can sell stock (equity) or it can issue bonds (debt securities). As a public company you can contact more potential investors, which will increase your access to capital. An initial equity offering can bring immediate proceeds to a company. These funds may be used for a variety of purposes, including growth and expansion, retiring existing debt, corporate marketing and development, acquisition capital and corporate diversity. Through a public offering, founders suffer less dilution when raising capital. Once public, a company's financing alternatives are increased. If investor interest in your company grows, you may obtain financing more easily in the future. A publicly traded company can return to the public markets for additional capital via a bond or convertible bond issue or secondary equity offering. A public status can also provide more favorable terms for alternative financing from public and private investors. In general, public companies have a higher valuation than private enterprises.
Liquidity:
By going public, a company creates a public market for its stock. In general, stock in a public company is much more liquid than stock in a private enterprise. Liquidity is created for the investors, institutions, founders, owners and venture capital professionals.
Investors of the company may be able to buy or sell the stock more readily upon completion of the public offering. This liquidity can elevate the value of the corporation. The stock's liquidity is contingent on a variety of factors including registration rights, lock-up restrictions and holding periods. A public company has greater opportunity to sell shares of stock to investors. Ownership of stock in a public company may help the company's principals to eliminate personal guarantees. Liquidity can also provide an investor or company owner an exit strategy, portfolio diversity and flexibility of asset allocation.
Compensation:
Many companies use stock and stock option plans to attract and retain talented employees. It is increasingly common to recruit and compensate executives with a combination of salary and stock. Stock in a public company can be issued as a performance based reward or incentive. This reward could be deemed desirable if the stock has a public market. Stock can be instrumental in attracting and keeping key personnel. Also, certain tax advantages are a consideration when issuing stock to an employee. Generally, capital gains taxes are lower than ordinary income taxes. Owners and employees may have specific restrictions relating to the liquidity and sale of the stock. A public offering can create a market for the company's stock. This market can result in liquidity and reward for the company's employees. A stock plan for employees demonstrates corporate good will and allows employees to become partial owners in the company where they work. An allocation of ownership or division of equity can lead to increased productivity, morale and loyalty. This type of compensation is a way of connecting an employee's financial future to the company's success.
Prestige:
A public offering of stock can help a company gain prestige by creating a perception of stability. The image of your company may be improved. A company's founders, co-founders and managers gain an enormous amount of personal prestige from being associated with a client that goes public. Prestige can be very helpful in recruiting key employees as well as marketing products and services. When sharing ownership with the public, you spread the company's reputation and increase its business opportunities. By selling stock on an exchange your company can gain additional exposure and become better known. This exposure may lead to improved recognition and business operations. The public status can be leveraged when marketing goods and services. Often a company's suppliers and consumers become shareholders, which may encourage continued or increased business. In this example, a public company could have a competitive advantage over a private enterprise. An IPO can indicate credibility to a company's customers, which may lead to increased sales and a greater corporate profile. Once public, lenders and suppliers may perceive the company as a safer credit risk, enhancing the opportunities for favorable financing terms. Also, a public offering can create publicity that is effective when marketing your company.
Publicity:
A public offering of stock can generate prestige, publicity and visibility, all of which is effective when marketing your company. Public companies are more likely to receive the attention of major newspapers, magazines and periodicals than a private enterprise. The proper use of press releases, interviews or news stories can increase investor awareness, shareholder value and demand for the stock. A strong ad campaign coupled with media initiatives can potentially increase sales and revenue. The publicity received from a public offering encourages new business development and strategic alliances. Analyst reports and daily stock market tables contribute to the awareness of the consumer and financial community. A successful public offering can get your company's story out to the world and open an opportunity for investors that are not suited for an investment in a private company. The publicity that a public offering brings can attract the attention of potential partners or merger candidates. Because the financial condition of a public company is subject to a higher scrutiny from the SEC reporting requirements, existing or future business relationships are strengthened. Tremendous exposure can be gained from a combination of radio, television, print and IPO publicity.
Mergers and Acquisitions:
Once a company goes public and the market for its stock is established, the stock can be considered as valuable as cash when acquiring other businesses. A successful IPO can have a dramatic effect on a company's profile, perceived competitiveness and stability. This perception can lead to expanded business relationships and added confidence by the consumer. A valuation of a private company often reflects il-liquidity. A successful public offering will increase a company's valuation leading to a variety of opportunities for mergers and acquisitions. With the ability to raise additional capital by returning to the public markets for another offering, a public company is better able to finance a cash acquisition. A public company also has the advantage of using the market valuation when exchanging stock in an acquisition. SEC disclosure requirements offer merger candidates the assurance of shareholder scrutiny and accurate reporting of the financial condition or solvency of the public company. Using stock to acquire another company can be easier and less expensive than other methods. A public company's corporate strategy is outlined by annual reports and marketing brochures which encourage corporate growth, development and merger activity.
Exit Strategy:
One of the important benefits of a public offering is the fact that the company's stock eventually becomes liquid, offering reward and financial freedom for the founders and employees. Officers, directors and controlling shareholders may have a ready market for their shares, which means that they can sell their interest at retirement, for diversification or for other reasons. An IPO also creates a public market for the stock, which provides a potential exit strategy and liquidity to the investors. A psychological sense of financial success can be an added benefit of going public. A public offering can enhance the personal net worth of a company's shareholders. Even if a public company's shareholders do not realize immediate profits, publicly traded stock can be used as collateral to secure loans.
reference for article
http://www.goingpublicnow.com/whypublic.html
here is something that should be looked at righ (budgenius is a publicly traded company. yes we have a large share structure here . the reason for that is the company cleaned up old debits from the past management. now that we are free of debit from past management we can move forward here. the company could have done a reverse split here but in stead they are doing a buy back of there stock witch is in the best interest of investors here. the company is growing on a daily bases. here is why a company goes public to start with. this whole post is just my opinion on the mattter.
here is the article
Why Go Public?
There are a number of reasons to take your company public.
Definition: The process of registering a company's shares of stock with the Securities and Exchange Commission and offering the stock for sale to the public.
Going public has many benefits for your company that can't be obtained by staying private.
Some of the most compelling advantages include:
Access to Capital:
A public offering of stock can vary from as little as $500,000 to over $1 billion. In 1999, 544 companies completed an IPO (Initial Public Offering) with an average offering size of $87.2 million. The total capital raised from these offerings was $23.6 billion. By offering stock for sale to the public, a company can access a substantial source of corporate funding. If a company needs to raise capital, it can sell stock (equity) or it can issue bonds (debt securities). As a public company you can contact more potential investors, which will increase your access to capital. An initial equity offering can bring immediate proceeds to a company. These funds may be used for a variety of purposes, including growth and expansion, retiring existing debt, corporate marketing and development, acquisition capital and corporate diversity. Through a public offering, founders suffer less dilution when raising capital. Once public, a company's financing alternatives are increased. If investor interest in your company grows, you may obtain financing more easily in the future. A publicly traded company can return to the public markets for additional capital via a bond or convertible bond issue or secondary equity offering. A public status can also provide more favorable terms for alternative financing from public and private investors. In general, public companies have a higher valuation than private enterprises.
Liquidity:
By going public, a company creates a public market for its stock. In general, stock in a public company is much more liquid than stock in a private enterprise. Liquidity is created for the investors, institutions, founders, owners and venture capital professionals.
Investors of the company may be able to buy or sell the stock more readily upon completion of the public offering. This liquidity can elevate the value of the corporation. The stock's liquidity is contingent on a variety of factors including registration rights, lock-up restrictions and holding periods. A public company has greater opportunity to sell shares of stock to investors. Ownership of stock in a public company may help the company's principals to eliminate personal guarantees. Liquidity can also provide an investor or company owner an exit strategy, portfolio diversity and flexibility of asset allocation.
Compensation:
Many companies use stock and stock option plans to attract and retain talented employees. It is increasingly common to recruit and compensate executives with a combination of salary and stock. Stock in a public company can be issued as a performance based reward or incentive. This reward could be deemed desirable if the stock has a public market. Stock can be instrumental in attracting and keeping key personnel. Also, certain tax advantages are a consideration when issuing stock to an employee. Generally, capital gains taxes are lower than ordinary income taxes. Owners and employees may have specific restrictions relating to the liquidity and sale of the stock. A public offering can create a market for the company's stock. This market can result in liquidity and reward for the company's employees. A stock plan for employees demonstrates corporate good will and allows employees to become partial owners in the company where they work. An allocation of ownership or division of equity can lead to increased productivity, morale and loyalty. This type of compensation is a way of connecting an employee's financial future to the company's success.
Prestige:
A public offering of stock can help a company gain prestige by creating a perception of stability. The image of your company may be improved. A company's founders, co-founders and managers gain an enormous amount of personal prestige from being associated with a client that goes public. Prestige can be very helpful in recruiting key employees as well as marketing products and services. When sharing ownership with the public, you spread the company's reputation and increase its business opportunities. By selling stock on an exchange your company can gain additional exposure and become better known. This exposure may lead to improved recognition and business operations. The public status can be leveraged when marketing goods and services. Often a company's suppliers and consumers become shareholders, which may encourage continued or increased business. In this example, a public company could have a competitive advantage over a private enterprise. An IPO can indicate credibility to a company's customers, which may lead to increased sales and a greater corporate profile. Once public, lenders and suppliers may perceive the company as a safer credit risk, enhancing the opportunities for favorable financing terms. Also, a public offering can create publicity that is effective when marketing your company.
Publicity:
A public offering of stock can generate prestige, publicity and visibility, all of which is effective when marketing your company. Public companies are more likely to receive the attention of major newspapers, magazines and periodicals than a private enterprise. The proper use of press releases, interviews or news stories can increase investor awareness, shareholder value and demand for the stock. A strong ad campaign coupled with media initiatives can potentially increase sales and revenue. The publicity received from a public offering encourages new business development and strategic alliances. Analyst reports and daily stock market tables contribute to the awareness of the consumer and financial community. A successful public offering can get your company's story out to the world and open an opportunity for investors that are not suited for an investment in a private company. The publicity that a public offering brings can attract the attention of potential partners or merger candidates. Because the financial condition of a public company is subject to a higher scrutiny from the SEC reporting requirements, existing or future business relationships are strengthened. Tremendous exposure can be gained from a combination of radio, television, print and IPO publicity.
Mergers and Acquisitions:
Once a company goes public and the market for its stock is established, the stock can be considered as valuable as cash when acquiring other businesses. A successful IPO can have a dramatic effect on a company's profile, perceived competitiveness and stability. This perception can lead to expanded business relationships and added confidence by the consumer. A valuation of a private company often reflects il-liquidity. A successful public offering will increase a company's valuation leading to a variety of opportunities for mergers and acquisitions. With the ability to raise additional capital by returning to the public markets for another offering, a public company is better able to finance a cash acquisition. A public company also has the advantage of using the market valuation when exchanging stock in an acquisition. SEC disclosure requirements offer merger candidates the assurance of shareholder scrutiny and accurate reporting of the financial condition or solvency of the public company. Using stock to acquire another company can be easier and less expensive than other methods. A public company's corporate strategy is outlined by annual reports and marketing brochures which encourage corporate growth, development and merger activity.
Exit Strategy:
One of the important benefits of a public offering is the fact that the company's stock eventually becomes liquid, offering reward and financial freedom for the founders and employees. Officers, directors and controlling shareholders may have a ready market for their shares, which means that they can sell their interest at retirement, for diversification or for other reasons. An IPO also creates a public market for the stock, which provides a potential exit strategy and liquidity to the investors. A psychological sense of financial success can be an added benefit of going public. A public offering can enhance the personal net worth of a company's shareholders. Even if a public company's shareholders do not realize immediate profits, publicly traded stock can be used as collateral to secure loans.
reference for article
http://www.goingpublicnow.com/whypublic.html
