Selling a business – have you considered going Public?

Floating a business involves listing it on the stock exchange and selling percentages of the business known as shares at a stock market. The three stock exchanges in the UK are the London Stock Exchange, PLUS Markets and PrivateShares.com.

The resulting outcome of selling a company through this route turns the business into a public company. The advantage of being a public rather than a private other than the fact you don’t have to lose your business entirely is the business can raise vast sums of money through advertising the shares on the Stock Exchange, thus raising massive investment potential to expand or possibly create a new product.

However there are some disadvantages and or burdens here too. Public companies require a minimum capital of £50,000.00 and ownership can involve thousands of shareholders. Accountability and regulation is far stricter and is controlled primarily through the Companies Act 2006 which should be a degree topic in itself.
The process is not entirely a matter of choice and should you decide to pursue this route, the business would be subjected to a stringent process of financial and legal due diligence.

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