Pros and Cons of an IPO

Pros and Cons of an IPO

Pros:

A huge section of public or investors to raise capital.

IPO Increase Company’s public image, exposure etc. for increasing company’s sales and profit.

Public companies can pull skilled employees and best management.

IPO raise largest money for the companies and it helps to grow companies.

Cons:

Companies need to disclose all financial, accounting, tax, and other business information for an IPO

Increased accounting and marketing cost.

Increased time and effort for manage all the operations.

Distribution of all the information of the company to public.

Legal and regulatory relates risks.