"Going Public doesn't have to mean Going Broke."

Smaller businesses wishing to enjoy the benefits of “going public,” or trading stock on the public markets, have several options, the most famous of which is the Initial Public Offering (IPO). It’s the most famous because it’s the route of choice for the world’s largest companies, and therefore gets mentioned most in the financial and general press. It’s also the most expensive and the lengthiest method of taking a company public. Because you lose a lot of control, the IPO is also the riskiest method of taking a company public.

Less well known is the SB-2, which is a less complex, less expensive version of the required securities registration process. The U.S. Securities and Exchange Commission (SEC) has approved this process in order to facilitate small business growth and investment. With the SB-2 filing process, the public markets are more accessible than ever to small businesses. Becoming a publicly traded company may be within the reach of your business—and it could be easier and less expensive than you ever thought possible. The following white paper details what you need to know about the SB-2, the affordable IPO alternative.

What are the benefits of going public?

Going public is often the best way for an already successful business to raise capital. The reward for success is growth – by expanding the company, by hiring new people, or by opening additional locations. All these initiatives take capital. If your cash flow can’t generate the capital you need, taking your company public allows others who believe in your potential to support your goals and benefit from them.

Second, going public can provide entrepreneurs with an exit strategy. As they approach retirement, they can distribute some of their shares to their heirs, protect their assets using powerful strategies available only to owners of public companies, and plan for their retirement. A third benefit is the ability to use stock to purchase additional companies. Also, public stock is a great tool for rewarding loyal employees and attracting new employees. And finally, taking your company public is the most powerful personal wealth building strategy in our economy.

How do I become recognized as a publicly traded company?

As in most instances where the transfer of money, control of business and the development of capital are concerned, there are important compliance issues that the federal government must become involved in. This paper attempts to present an understanding of the government’s regulatory powers under the Securities Act of 1933 and the corresponding reporting requirements of the Securities Act of 1934. These acts are essential in answering the question: "How do I become recognized as a publicly traded company?"

Earlier SEC regulations have been managed and implemented without full recognition of the growing and powerful economic engine associated with the small business environment. As recently as 1992, comprehensive changes to these governing rules and forms were created. These modifications were intended to significantly decrease the burdens of raising capital for the small business issuer; thereby allowing for easier access to the funds and processes necessary for ‘going public.’

What are the parameters that are required to go public by an SB-2 filing?

Want to know more?

Download the White Paper "The Affordable IPO Alternative" for just $129.99.

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