Companies’ leaders may have been hesitating to finalize their decision to go public on the Frankfurt Stock Exchange due to a lack of understanding about the benefits of going public. As the company’s decision – maker, if you are seriously considering taking your company public on the FSE – that is allowing stocks in your company to be offered for sale to the public – there are some great IPO benefits that you must become aware of. Below are only some of the main advantages of going public on the Frankfurt Stock Exchange that your company can surely benefit from.

INCOME

For starters, perhaps the greatest advantage of going public is that it creates a positive cash flow. For a company experiencing financial difficulties this option is far better than trying to get a bailout loan. Loans are often bad investments in the long haul as they tie up future earnings and can drag on for years. The new cash flow from going public will not have to be paid back and there are no interest rates at all. This will mean that you have additional capital for investors and employees, and most importantly, for expansion. On the open market at the FSE your shares will be sold to investors who are expecting nothing but an appreciation of their investment and the eventual dividends that come from being a part of a prosperous enterprise.

PUBLICITY

A second major benefit of going public for your company is the added publicity. The best publicity is free publicity. Announcing that your company is about to go public on the Frankfurt Stock Exchange will generate a lot of media attention and there are 2 advantages in this sense. To begin, the attention will generate a new customer base as well as open up new opportunities for mergers and acquisitions. Also, be aware that there are laws governing the amount of information and what types of information can be released to the public. However, the simple fact that you have applied for an opportunity to make an IPO will generate attention from the press, especially the business press. Having a consultant that specializes in taking a company public can improve efficiency rate of your navigation through these murky waters.

VALUE

Another added benefit of going public is the increase in value of your company from the very start of the process. Private companies are generally valued at four to six times their earnings bur publicly traded companies are valued at up to twenty times their earnings. This gives you a greater net worth which also means that it will work to your benefit if you are determined to sell your company in the future as it will increase your company’s selling price.

EMPLOYEES

Finally, going public will attract a better caliber of employees as the increased cash flow can give you the means to offer greater incentive packages such as employee stock options and estate planning. This will also appeal to current employees and your employee turnover will be greatly curtailed. Making the decision to take your company public by listing it on the Frankfurt Stock Exchange will greatly improve your standings in the business community.

It will be infinitely easier to make this transition with a knowledgeable consulting firm at your side. Gathering the paperwork necessary for the IPO, submitting all the required documents, and making certain all the legal matters are understood by the client are sensitive duties that can be accomplished only by an experienced IPO consultant.

Contact Marc R. Tow TODAY for your free consultation, at 913-904-9503, MarcTow2000@yahoo.com

About Marc Tow

Marc R. Tow is a business adviser, serial entrepreneur, and solutioneer, speaker for entrepreneurs, business owners, and investors. He provides timely counsel, advice and solutions in the areas of marketing, turnaround, capital formation, going public, and entrepreneurship. His 6000 clients are a testament to his successful strategies. Initial consultations are free of charge.

Contact: Marc R. Tow, 913-904-9503

MarcTow2000@yahoo.com

http://www.linkedin.com/in/moneymarketingturnaround

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