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IPO

For companies looking to tap the public equity markets, an initial public offering may be the right choice.  Some benefits of being a public company include:

  • Bolster and diversify equity base;
  • Enable cheaper access to capital;
  • Exposure and prestige;
  • Attract and retain the best management and employees;
  • Facilitate acquisitions;
  • Create multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.

Despite the many benefits of being public, there are some drawbacks to consider, including increased financial reporting costs, increased regulatory costs, and other distractions associated with being a publicly traded company.  Due to MCM Value Management’s integrated and disciplined approach, many of these negatives are minimized.  MCM Value Management work closely with company management to determine the appropriate timing, the offering price, and number of shares issued, and the stock exchange on which to list its shares.  Once those decisions have been made, MCM Value Management will undertake the legal, accounting, tax, and all other underwriting functions necessary to execute an IPO.  With MCM Value Management as a partner, the whole IPO process appears seamless allowing company management to stay focused on job one: running the company.