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Redtail Capital - Unlocking Business Value

 

Your Exit GoalsBusiness Exit OptionsBuilding Business ValueBusiness Exit ProcessWhy Choose Redtail Capital?

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Sale

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Leveraged Buy Out (LBO)

Management Buy Out (MBO)

Employee Stock Ownership
Plan (ESOP)

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Gift or Charity 

Public Offering

Liquidation

The IPO

We all dream of the ultimate IPO - going public and having a Facebook valuation. While there are many advantages to taking a company public, including greater access to capital, more liquidity for owners, and the ability to use equity as leverage in acquisitions, there are many drawbacks as well.

While the SEC and Congress are contemplating a reduction in reporting and audit requirements for small public companies that can potentially greatly reduce annual compliance costs, there will always be more regulatory compliance and scrutiny of a public company versus a private one.

There is also a great deal more visibility into your business. You will be filing quarterly and annual statements that give a great deal of public transparency to your business processes, your financial situation, your management team, your risk factors and more.

Your company's valuation will also be predicated on market perceptions. A public company CEO has two jobs - one to run the company and the other to manage shareholder expectations. It can be a heavy burden and many good business managers are not prepared for this.

If your company has a special story and strong fundamental value, there may be an opportunity for you to take your company public. There are several routes to a public status, including direct filing, an underwritten offering (the traditional IPO) or a reverse merger with a public entity (caution required!)

We will work with you to determine the suitability of an IPO option for your company and if applicable provide a strategy to get you started on that path.