Going public: The process for small and mid Size companies to go public.
Itís dream of every person who starts a business to some day see it trading in one of stock exchanges even after they are no longer associated with company. The first step (#1) is simple since most small company are already incorporated and have a board of directors, so we will start with #2.
Step. #2. Engage a consultant but not before doing a background check. This is a must because consultant who is supposed to be working for you may be very person to destroy your dream.
Simply type consultants name in Google and if nothing comes up, try brokerage firm they were last associated with, to find out if they have been disciplined, or convicted of some crime by Securities and Exchange Commission or some other regulatory body.
Many individuals when barred from participating in any securities transaction or from acting as consultants still do so in a stealth manner. Hoping that you will be impressed with their sales pitch and not bother looking into their background.
The reason most consultants do not have websites is because they do not want regulators to find out that they are involved in stock market related activities.
Step. #3. If you are not using a securities attorney, ask consultant to recommend a good one, he will probably know several. A good attorney is critical since you want him to know process and has done this many times before.
Step. # 4. Have an audit done, this a requirement and must be done prior to any filing with Securities and Exchange Commission. The CEO needs to take an active part in auditing process since under new corporate governance laws he must affirmed final audited financials as being accurate.
Step. #5. The officers and directors of company must decide what method they are going to use to achieve their goal of becoming a public company. This can be accomplish through a reverse merger and by doing a Regulation D (504) offering.