Home topics small-business-resources growing Growing Growing Listing Your Business on the Stock Exchange Brad Howarth August 7, 2008 Privately owned companies wanting to raise capital could benefit from listing their company on the stock exchange as an Initial Public Offer (IPO) . Companies who can demonstrate a strong, sustainable track record of growth earnings backed by well protected Intellectual property, the benefits could be substantial. Greater marketability, financial benefits, higher credibility and media coverage as well as attracting quality staff and mergers and acquisitions are just some of the positives from going public. There are a number of alternatives for owners of privately owned companies to raise capital, and in recent years an Initial Public Offer (IPO) on a stock exchange has proved very popular. However, an IPO is a significant step. It doesn’t happen quickly and months, indeed years, of pre-planning is necessary to get a business ready for public listing. It can also be a costly and disruptive process in the short term and, once listed, the company is subject to an increased level of reporting requirements and public scrutiny, as well as pressure from shareholders to meet earnings and dividend forecasts and maintain a rising share price. So owners need to consider their options very carefully to ensure an IPO is the best option for them. There are a number of pluses and minuses that business owners don’t always take into account at the outset. On the negative side, going from a privately run entity where there