The high cost to complete an IPO onto a U.S. stock exchange – on average $2.5 million*, combined with the declining bank appetite for small-cap IPOs, is forcing many small companies to stay private longer. However, the public markets offer tremendous benefits for small-cap companies seeking to raise capital and grow their businesses. Fortunately, an IPO isn’t the only method for small companies to gain the benefits of a public market.
In our second whitepaper with IR Magazine, on Small-Cap company issues, we focus on three alternatives to the traditional IPO:
- Reverse mergers
- Slow PO
- Regulation A+
These three methods offer a faster, less expensive and less burdensome path to the public markets. We analyze the pros and cons of each alternative to help you evaluate which option might be the best for your company.
You can download and read the complete whitepaper on IR Magazine: “Part 2: 3 IPO alternatives for small-cap companies”
*2011 report by the IPO Task Force
