Public Offerings Attorney in California

Striving for Successful Public Transactions Since 1996

Empower your California business by securing funds through public offerings or the sale of publicly traded equity shares, unlocking potential rewards for your achievements. Based in Southern California, our team of public offerings lawyers offers comprehensive representation and expert guidance throughout the transition from private to public, enabling you to access financing through the public markets. These markets not only provide increased liquidity, but also open the door to new investment prospects. With Adams Corporate Law’s track record of successful public financing, rest assured that your California business will receive the meticulous attention it deserves.

Benefits of Going Public

Going public offers numerous advantages, including:

• Access to Capital: Public offerings allow companies to raise significant amounts of money that can be used for business expansion, product development, acquisitions, or paying off debt.

• Enhanced Credibility: Publicly traded companies often have more credibility with customers, suppliers, and lenders due to their increased visibility and stringent regulatory requirements.

• Liquidity for Shareholders: Existing shareholders, including early investors and founders, may have the opportunity to sell their shares, providing liquidity and diversifying their investments.

• Employee Compensation: Public companies can use stock options as part of their compensation packages to attract and retain top talent.

• Improved Valuation: Public markets can potentially lead to a higher valuation for your company as the market determines its worth based on demand for shares.

Risks and Considerations of Going Public

While the benefits of going public are significant, there are also risks and challenges to consider. Some potential downsides include:

• Increased Regulatory Scrutiny: Public companies must adhere to stringent SEC regulations, including periodic reporting, disclosure of financial information, and maintaining compliance with corporate governance rules.

• Loss of Control: Founders and early investors may face dilution of their ownership stake, and decision-making may become subject to the influence of shareholders and the board of directors.

• Ongoing Costs: Compliance with SEC regulations requires ongoing legal, accounting, and regulatory costs, which can be substantial.

• Market Pressures: Public companies are often under pressure to meet quarterly earnings targets, which can lead to short-term decision-making at the expense of long-term growth.

Alternative Financing Options

If going public does not align with your business goals, there are alternative methods for raising capital that our attorneys can help you explore, including:

• Private Placements: Selling securities to a select group of investors without registering with the SEC.
• Regulation A Offerings: A simpler, less expensive way to raise up to $75 million through a mini-IPO.
• Venture Capital and Private Equity: Securing investments from private equity firms or venture capitalists.

Consult with an experienced California business lawyer before making any decisions on taking your company public. Call (714) 699-9602 when you are ready to discuss your options.