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How do we go through the process of making our company publicly traded?

We have a company that has been in business for three years. The first year of business we had $65,000 in sales, the second year we had $650,000 in sales, and this year we will hit $3,000,000 in sales. We want to double the amount of effective advertisements and make the company publicly traded. How do we do this?

Investing, Starting Out
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July 2018

What you are contemplating in "going public" is the process of an Initial Public Offering or IPO. This is a complex process that could involve a number of professionals such as an investment bank as an underwriter, external auditor, stock transfer agent, broker dealer, and others. The best place to start is to contact an attorney with a speicalty in securities law who can explain the process, what their role would be, whether your firm would qualify as a publicly traded business, what securities laws and regulations you will be subject to, and guide you through the process if it would indeed be in your best interst to do so.

While your firm's growth is admirable, you fit the definition of a small business, as per the Small Business Administration, until you reach revenue levels in excess of $35 million. As such, an IPO may be out of your reach. I'm aslo concerned that you did not mention what your profitability is and how that compares to other firms in your industry.  As an alternative, you might consider taking in private investors who would contribute capital that could be used to fuel further growth. Contracts and agreements would be required and, again, an attorney is your best resource for this.

 

July 2018
July 2018