23:51
Faizan
Knowing what your end-game is for your business will help you determine the business structure that is right for you now and in the future. The major variables that determine your best end-game include the size of your business, the amount of assets and liabilities, your desire to maintain control and your desire to liquidate ownership. Obviously, as a business owner, you want to limit the complications, the expenditures and the liabilities while maximizing your tax benefits. These goals exist when the business is created, but also extend to the "end-game" of your business. And just like selecting which business entity is best for you at the creation of your business, the end-game you choose for your business will affect the liability, the tax benefits and obligations, the expenditures and the complications.
The major end-game options are:
(1) Take your business public through an IPO (initial public offering).
(2) Sell the business in its entirety.
(3) Sell the assets from the business and dissolve the remaining entity.
"Going Public"
Taking your business from a private company to a public company through the process of an Initial Public Offering can help you raise exponentially more money to use in your company than other avenues. Access to more money provides the means to grow your business, or "cash out" your ownership. Raising money for a public company is much easier that raising money for a private company. And if you, as the owner, wish to liquidate more of your ownership, it is much easier to sell your ownership through selling shares in the stock market than to try to sell the entire company and/or assets.
The major end-game options are:
(1) Take your business public through an IPO (initial public offering).
(2) Sell the business in its entirety.
(3) Sell the assets from the business and dissolve the remaining entity.
"Going Public"
Taking your business from a private company to a public company through the process of an Initial Public Offering can help you raise exponentially more money to use in your company than other avenues. Access to more money provides the means to grow your business, or "cash out" your ownership. Raising money for a public company is much easier that raising money for a private company. And if you, as the owner, wish to liquidate more of your ownership, it is much easier to sell your ownership through selling shares in the stock market than to try to sell the entire company and/or assets.
Posted in: business
