Frequently Asked Questions.

What are the benefits and drawbacks of going public?

 

In general, going public is attractive to companies because of the financial flexibility provided by the public marketplace. After going public, the company can use its stock as currency to attract new employees or to finance acquisitions. Capital is significantly easier to raise when investors can see a clearly defined exit strategy; and insiders can create significant wealth when they perform well. Going public also provides the ability to access public financial markets without giving control of your company to outside Investment Bankers and/or Venture Capitalists.

This chart helps sum up the difference between being a public and private company:
Public Private
Public companies get better valuations. Leading to less dilution for the original shareholders enabling them to maintain control. Private companies generally have lower legal, accounting and public relations costs.
Stock that can be used for acquisitions. This is less expensive which saves the company’s capital for other efforts. Private companies are not required to disclose information to the public.
Public companies have easier access to capital because there is a clear exit strategy for investors and the public marketplace is the largest pool of capital in the world. Less company exposure.
Unlike stock in a private company, stock in a public company has a liquid market where is can be sold. The founders, minority shareholders and employees can all take advantage of this liquidity. More difficult to raise capital and to transfer wealth.
Increased credibility with suppliers, customers and partners. Contributing to better contracts and more sales. Fewer legal requirements.

How long does the process take?

This depends largely on the needs of the company and their ability to pull together a business plan and SEC audited financials. We employ a number of methods for taking companies public based on the particular needs of each company. The process can take as little as 60 days and as long as 120 days after filing. We encourage companies interested in going public any time in the next year to submit a profile to get the process started.

What is the ideal company for OBX Capital Group to work with?

We deal with companies of various sizes in almost all industries. Ideally we look for companies that have #1 a solid management, #2 a solid business plan, #3 revenues are between $500,000/yr and $50,000,000/yr and #4 can take advantage of the benefit of going public.

How much does it cost to go public?

Because we only assist companies that we firmly believe in, OBX Capital Group along with our network of professionals (SEC accountants, lawyers, investor relations, and business consultants) reduce the out of pocket costs of going public by taking a stake in the company.

Does my company have the option of paying for parts of the process?

Yes, paying for parts of the process is always at the discretion of the company going public.

Can OBX Capital Group help secure loans to bridge the company over until it goes public?

While we do not help secure bridge loans, we do occasionally provide them directly as part of our service. It is because we only assist companies that we firmly believe in that we can provide this service.


Where can I learn more about the legal information on going public?

http://www.sec.gov/info/smallbus/qasbsec.asp

What is the best way to get started with OBX Capital Group?

The first step in the process is our evaluation of your company and it’s need to go public. Please submit a profile and we will contact you as soon as possible, after our reviewing your information.