The Advantages of Listing Your Company on a Stock Exchange
Increase Your Company Value by Three to Four Times
Privately owned companies are typically valued at between five to six times their annual net profit. US public companies are valued at twenty to twenty-five times their annual net profit. By Going Public the value of a private company will be increased three to four times its private company value. If a private company had a profit of $2 million dollars it would be worth, on average, $12 million dollars. If that same company was converted to a public company it would be worth between $40 million dollars to $50 million dollars.
Sell off 49% of former Private company converted into a public company.
Using the same example of a private company with a $2 million dollars profit being worth $12 million dollars if private or $40-$50 million if public.. If the owner sold off 49% of the public company he would have $19,600,000 cash in hand and still own 51% of the public company.
No limit on Raising Money
There is no limit on how much money a foreign or domestic public company can raise on Wall Street. Companies must be in compliance with securities regulations and listed on a US stock exchange.
How can a small US Company attract Investors?
Any US public company, foreign or domestic, that is seeking to raise additional capital is allowed to advertise its offering. As long as companies have an active registration statement on file with the SEC, they can advertise their offering to prospective investors. They can use radio, TV, newspapers, email, Internet, and social media. (mostly no caps.) These rules enable the smallest U.S. company to get its message out to investors. If investors like the message, there is a good chance they will invest.
No limit on Number of Times Money is raised. Sell 49% of the company for $19.6 cash, develop replacement management, and sell off the second half over several years.
There is no limit on the number of times a foreign or domestic public company can go to Wall Street to raise money. Companies must be in compliance with securities regulations and listed on a US stock exchange.
No United States taxes on foreign companies that go public in the U.S. U.S. passports are available when a foreign company goes public in the U.S.
This is not the much abused EB-5 program that requires a substantial investment. This program falls under the “L Visa.” The U.S. government recognizes that before a foreigner establishes a business in the U.S., he needs assurance that he can enter the US at will and for an unlimited length of time. The L Visa program usually includes two families. L Visas can lead to a Green Card and US citizenship if desired. Grow the public company to its full potential using capital raised from the public. Some portion of your capital can be invested back into the company.