The Benefits of Initial Public Offering

The owner of Dean Law Corp., Faiyaz Dean and his team provide legal guidance in areas of registration statements, reverse mergers, and other securities services. Additionally, Faiyaz Dean provides numerous services to help ensure the successful conversion of private companies into public entities.

A company that wishes to enter the public market can sell shares of their business on a stock exchange, such as the New York Stock Exchange, a process known as an initial public offering or IPO. By doing so, the organization allows shareholders to own a part of the business and earn from their investment, as well as receive the occasional dividend, as the company prospers.

The advantages of becoming a publicly traded company include direct access to capital and cost-effective employee benefits. Companies listed on an exchange can use capital and equity earned to repay debt, acquire other organizations, and purchase the tools and resources needed to stimulate business growth. Furthermore, enhancing employee benefits with stock options helps recruit skilled individuals without additional expenditures. A form of equity-compensation, stock options also provide employees with an incentive to achieve goals, in that the company’s successful performance means they might earn a higher financial return on their investment.

Advantages of Going Public

Faiyaz Dean provides legal services related to a variety of issues associated with securities. As an attorney at Dean Law Corp, a law firm with offices in Seattle and Vancouver, Faiyaz Dean works with clients located in throughout North America, as well as international clients based in other areas of the world. Among his many areas of expertise are initial public offerings, or IPOs.

When a privately held company decides to become publicly traded, the initial sale of company stock is known as an IPO. There are a number of reasons why a company might decide to go public. One of the major reasons is the fact that becoming publicly traded can raise cash for the company.

Trading on the open market also makes the company more liquid. If a holder wants to get rid of his or her stock, that can be done easily. As a result of this increased flexibility, the company is able to offer stock ownership plans to employees, for example. In addition, going public opens doors when it comes to mergers and acquisitions. The company can offer stock as part of the agreement.

An Overview of Reverse Mergers

As an attorney with Dean Law Corp, Faiyaz Dean has worked with a wide variety of clients on securities-related matters. Among Faiyaz Dean’s areas of expertise is providing assistance with reverse mergers.

A reverse merger, or a reverse IPO, is an event where a public company is taken over by a private company. This process, which can help streamline the process of a company going public, involves private company shareholders purchasing the shares from shareholders of a public company. Typically then these shareholders then receive the majority of the public company’s shares, and have control of the company through the board of directors.

There are several advantages of the reverse takeover method. The company can become publicly held at a lesser cost than other methods. It might also involve less stock dilution than what would accompany a traditional initial public offering, or IPO. It also relies less on the current market conditions than IPOs. This reduces the risk since only those involved in the two companies are part of the deal.