The current economic environment has created a unique opportunity for small to midsize private companies. No longer do they have to look at the sale of their businesses as the only viable long-term exit strategy or ultimate liquidity event for their shareholders. The valuations for the sale of legitimate privately held operating companies have traditionally been conservative, usually two to three times after tax earnings, Private companies can now gain access to the public markets through an initial public offering (IPO) of their stock.

The reality is that most private companies seek to go public to gain access to the capital markets, which enables them to raise capital for the expansion of their business. Additionally, the valuations of a public company are usually several times that of a private company, therefore allowing less dilution to the principals of the company when raising capital in the public marketplace.

The Private Company which has decided to enter the public markets has taken the first step in the process of creating enhanced shareholder value.

Some of the benefits of a publicly traded security include:

• Increased liquidity for the company’s shares and shareholders.
• Potentially higher per-share prices
• Greatly increased price/earnings ratio resulting in higher company valuations.
• Greater access to the public capital markets.
• Enhanced equity funding through secondary stock offerings.
• The company's stock can be used as a currency for acquisitions.
• The ability to use stock incentive and option plans to attract and retain key employees.
• Tax advantages

Going public can also be an effective retirement strategy for business owners. By becoming a public company, a private corporation can sometimes increase its real market value by three to ten times, create considerable tax advantages for the owners (original founders), and the newly created value can become part of an estate planning process, providing value not only for the founders, but for their family members during the years to come.