Is
Going Public the best solution?
Taking
a start-up to an IPO is considered the ultimate business success. However,
this should not unduly influence your exit choice. Going public comes
with many advantages, greatly enhanced access to capital markets, industry
and market recognition, and the possibility to attract qualified management.
But
going public comes with many challenges, such as the obligation to make
certain financial and operational disclosures. Such obligations, along
with loss of flexibility in corporate governance take away some of your
company’s competitive edge. There are also quarterly and annual
reporting obligations. An additional layer of complexity is applied
to all corporate activities.
OCCIDENTAL
can assist you in assessing the consequences of going public and making
the right choices on the future of your company.
M&A
Opportunities
Although
being acquired by a bigger player in the industry may not have the allure
of an IPO, it can offer a liquid exit for owners, even in a cashless
transaction. It can also enable the target company’s business
to go to the next level without the extensive and expensive expansion
that would occur with an IPO. Certain companies are not made for a large
scale activity. Often, the only possible exit option is a private sale.
A small company may also benefit from a merger with a complementary
firm of equal size or a roll-up of several small companies can be beneficial
by attracting the attention of a publicly-traded industry leader.
Acquisitions
come in all shapes and sizes and structuring the right deal for the
right company is essential to the successful closing of the deal. Most
issues come up while the seller is performing due diligence on the target
company and working closely with your counsel can help you anticipate
and fix any possible obstacle to the deal.
OCCIDENTAL
has extensive experience in M&A transactions and has advised sellers
and purchasers. We can assist you in structuring tax-advantageous deals
with the best terms possible. We can help you anticipate due diligence
review and assist you in complying with all representations and warranties
you are required to make to the purchasers.
