3 Reasons to Hire an Attorney When Taking Your Company Public

Law Blog

Taking a company public can be a great way to generate capital without the help of private investors. Going public refers to the process by which businesses make shares of ownership available to the average citizen.

An initial public offering (IPO) is the name given to the first round of shares sold. If you are considering taking your company public, you will need to work closely with an attorney who specializes in securities law to avoid legal pitfalls that could compromise your company's future success.

1. Drafting of Registration Statement

The first step in going public is the filing of a registration statement on your company's behalf with the U.S. Securities and Exchange Commission (SEC). The registration statement essentially provides potential share buyers with important information about your business.

You will disclose information pertaining to business operations, management, potential risk, and financial transactions. If you fail to include all pertinent information in your registration statement, the SEC could reject your request to take your company public.

An experienced attorney will be able to draft a registration statement that is comprehensive and correct to avoid any delays in the launch of your IPO.

2. Compliance With the Exchange Act

Once you have made your intentions to take your company public known by submitting your registration statement to the SEC, you will be subject to the rules and regulations set forth in the Exchange Act. This act requires the reporting of much of the same information included in your registration statement on a regular basis (usually quarterly).

If you fail to file the requisite reporting forms in a timely manner, your company could face strict penalties and sanctions from the SEC. A securities attorney will be able to walk you through the reporting process to ensure your company stays in compliance with the Exchange Act at all times.

3. Compliance With FINRA Regulations

Receiving the approval of the SEC on your registration statement doesn't mean that you can begin selling shares on the open market. It just means that you qualify to do so and that your company is subject to SEC reporting guidelines.

Your attorney can help you file additional paperwork with the Financial Industry Regulating Authority (FINRA). FINRA is responsible for assigning the ticker symbol that allows a company to publicly trade in one of the nation's large financial markets.

Once you receive your ticker symbol, your attorney can help you monitor the buying and selling of your company's shares. If you're ready to start this process, contact services such as Carter West Law to learn more.


12 July 2019

How to Gain Guardianship Over a Child

The laws governing child custody and guardianship can be confusing. As a family attorney, I have helped many clients gain legal guardianship over a foster child or a relative's child. Getting legal guardianship of a child you are caring for is important because you need to be able to make decisions about that child's education, health care and other matters. This blog will help you navigate the world of legal guardianship and show you how to take steps to get guardianship over a child whether the child's parents are cooperative or not. Legal guardianship does matter even if a child is not going to be adopted. I hope to help people find the way to get this done.