Why do private companies go public?

Private companies become publicly traded to raise investment capital, increase their corporate valuation, issue stock for acquisitions, use stock options as an incentive, improve corporate & brand awareness, reduce their business risk and provide liquidity for their shareholders.

Public companies generally have more investors willing to invest, have faster access to investment capital, lower dilution for equity investments, more flexibility in completing acquisitions, easier to attract and retain talent, higher levels of shareholder liquidity and typically, significantly higher valuations.

Public companies have significant advantages. Going public is an incredibly valuable tool if management understands how it can be used to raise investment capital, attract and retain employees, acquire other companies, reduce business risk, increase liquidity and create meaningful long-term wealth. A company can go public through an initial public offering, direct public offering, direct listing or reverse merger.