Listing on Stock Exchange
Wepeak™ provides many services to help companies for going public:
- Business Valuation
- Feasibility studies
- Due Diligence
- Completing EFSA rules and procedures
There are two key benefits from going public:
- Cost of Capital:
Cost of capital is much lower for public companies than for private companies, in particular with respect to equity versus debt. In contrast, a private company not only has to give up a larger piece of itself to get the capital it needs, but also may not be able to get any money at all, and in most cases money is expensive. As many entrepreneurs can attest, it is very difficult to successfully raise money in private companies. Raising money in a public company is far easier.
- Liquidity for Investors:
The easier it is to sell a stock, the more liquid the investment. Stocks in public companies are far more liquid than in private companies for both legal and practical reasons. The liquid characteristic of public company’s stock motivates buyers to pay more for that stock than they would if the company was private. Other reasons to consider going public include prestige, ability to use the company’s stock as currency in mergers and acquisitions.