Business Law: Why You Need a Lawyer When Taking Tour Company "Public"

If you are planning on taking your company public, it is critical that you enlist the services of an attorney. An attorney will be helpful in crafting your IPO as well as making sure that you file all necessary paperwork with government regulators. What are some other good reasons to hire an attorney when going public?

Make Sure You Don't Say or Do Anything Misleading

Prior to going public, you will go on what is known as a road show. This gives you an opportunity to talk to investors and answer any questions that they may have. For instance, they may ask about your management structure, who your managers are or what your plans for growth may be. They may also ask about your financial information or ask questions about your projected valuation. During this process, your attorney will be there to clarify any information that you put out if there is any dispute or question as to its authenticity.

Most Information about Your Company Will Go Public Too

When your company goes public, almost all the information about it will go public to. If you omit required information or lie about anything you disclose to the public, you could be fined or face other legal consequences. In the event that you are under investigation or have any questions about what you have to disclose, Ramsden Lawyers or another corporate attorney will be able to help answer them. Your attorney will also be able to help you with any financial or other filings that have to be made on a regular basis.

Learn More about Your Role after the Company Goes Public

After the company goes public, you aren't in charge anymore. Instead, a board of directors will determine if you are allowed to continue in your role as CEO or otherwise the leader of the organization. It may be worthwhile to hire an attorney who may help you negotiate exit terms in the event that you are ever fired or decide to leave the business on your own.

Taking your company public can be a great way to make money and give your investors an opportunity to exit with a healthy profit. However, going public also means giving up control of an organization that you have led for many months or years. Therefore, it may be in your best interest to consult with legal counsel who can make sure that meet all of your obligations going forward.


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