Going Public - What It Involves
Going public may be considered by a fast-growing medium- sized company with a need for additional capital to fund their growth. The major benefits include: 1) Less dillution of control, 2) Increased ability to borrow, 3) Enhanced ability to raise equity, 4) Liquidity and valuation, 5) Increased reputation and prestige, and 6) Increase in owners' personal wealth. Disadvantages include: 1) Expenses are high, and 2) Loss of control. Most companies going public have reached significant size, profitability and growth - $15 to 20 million in sales, net growth of thirty to fifty per cent a year. The first step in the process is to choose an underwriter. Important characteristics include good reputation, distribution capability that is strong, experienced, capability to make a market, experienced analyst, and the ability to provide financial advice. The attorney needs to guide the company concerning whether it should even consider a public offering, should stay on top of the registration process and other legal situations. The Certified Public Accountant firm should annually audit a company even considering going public as it facilitates the process. During the process, the firm assists in the registration, as well. Two underwriting agreements are a firm commitment and a best-efforts committee. A registration statement is submitted and the Securities and Exchange Commission (SEC) reviews it. Cost depends on several factors and ranges from seven to ten per cent of the offering for the underwriter alone.
Publication Name: Journal of Accountancy
Making your privates public
The sales of Toysmart.com's assets, including its customer data, at a public auction was blocked by a US Bankruptcy Court judge in Massachusetts. Such auction was previously blocked by the Federal Trade Commission (FTC) but eventually approved by the agency on condition that the data could only be sold to a 'family-friendly' successor company. The approval triggered a formal objection from the attorneys' general of 46 states and privacy watchdog TRUSTe. The attorneys' general cited violations of the Consumer Protection Acts of their states and insisted that consumers be notified of the potential sale and given the change to consent.
Publication Name: Law Office Computing
Consumer decision-making and age: maintaining resources and independence
Recent research places greater emphasis on subjective reasoning processes among older people, and suggests age affects financial decisions less than education, approach, and financial resources. People in general know less about financial issues than about health and everyday consumer issues. More broadly, social research on aging is increasingly incorporating economics, especially as the latter explores subjective elements of decision-making.
Publication Name: Journal of the American Society of CLU & ChFC
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