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Securities Law Whitley LLP Attorneys at Law

When to Go Public

Trusted Houston Corporate and Securities Attorney

Many business owners are unsure of just when to take their companies public. While it may be easy to assume that going public will translate into mountains of profits and hordes of capital from outside investors. The reality can be quite different, which is why you should consult with a Houston securities attorney when strategizing major changes for your business such as considering taking your company public.

Our firm works hard to provide businesses the legal resources they need to stay in-step with state and federal regulations and make the best legal moves for their company. We bring our over 10 years of experience to each client we interact with. Attorney Samuel E. Whitley has even been included in the listing of Super Lawyers® Rising Stars for his knowledgeable counsel. Trust Whitley LLP Attorneys at Law to put your business needs first!

Reasons to Go Public

Choosing if and when to go public is a major decision in the life of any company, meaning having professional advice is key. This is where our firm can help.

The goals for any company going public usually include:

  • Creating liquidity for existing shareholders and allowing them to sell stock at a higher valuation
  • Creating currency for future acquisitions
  • Creating stock-based compensation for employees
  • Building legitimacy and credibility among customers, suppliers, and investors
  • Raising money in public markets for business expansion

Only the largest of companies make a substantial windfall just after going public and realistic expectations should be in full view.

In general a company should only go public when it is profitable. Just how profitable depends in large part on the company and industry, but if annual profits are under $1 million, it may be wise to hold off on going public.

Precautions to take Seriously

Going public can also mean incurring certain costs such as annual audits, quarterly reviews of financial statements, and other obligations. Companies who go public need to have a good accounting system in place, an accountant or CFO who can create GAAP-compliant financial statements, a report-filing system with the SEC, and they will need legal counsel to prepare these yearly and quarterly reports.

All these are good reasons not to go public too early—going public to raise the necessary funds to pay for the requirements just mentioned is not a good idea.

Speak with our Houston securities lawyer who can apprise you of what going public can mean for your business and provide you with the legal advice you need.

Call today to request your consultation—(888) 252-8277!

Providing Superior Representation

  • One Of The Very Best Attorneys I Know

    “Sam is one of the very best attorneys I know. Why? He is knowledgeable, reliable, dependable, and a pleasure to work with. He really takes care of his clients and works extremely hard at doing the best job he can for his clients. Please consider him if your looking for an attorney who not only can deliver results but who will be with you every step of the way. I am very confident in this recommendation as I have come to know Sam over several years and would recommend him to my family and business associates without any hesitation.”

    B.C.

  • Accessible & Accommodating

    “R.Sam is very knowledgeable in Securities Law. Reliable adviser in deal structuring. Accessible and accommodating to clients.”

    P.N.

  • I really appreciate what this company does.

    “I really appreciate the legal services Mr Whitley rendered for my company Divergent Capital Partners LLC to buy and hold commercial real estate. The Whitley law firm has giving me advice on how to raise Capital for my company. I always get a quick response regarding my questions and legal concerns. I've been a client with the Whitley law firm for almost two years and my expectations are always full filled and exceeded. I highly recommend the Whitley law firm for business needs.”

    David Lewis

  • Extremely Knowledgeable and Competent

    “Samuel Whitley was extremely knowledgeable and competent about securities law and business in general. In preparing the fund documents, Sam offered helpful perspective and recommendations on related details based on his previous experience. Also, he was quite timely and responsive in his work, answering questions typically within a day or a few days of being asked. In addition, I had some unique circumstances to address and I found Sam to be creative in helping solve problems and in creating solutions. I had originally decided to work with him due to his experience in securities law. After working with him, I saw the direct benefit his experience provided for the work he accomplished for me. I'm glad I decided to work with Sam for these activities, and given another opportunity I would definitely choose again to work with Mr. Whitley.”

    R.R

  • A Man of High Integrity & Character

    “Sam is a well educated attorney that specializes in corporate law, merger/acquisitions and SEC compliance. I have worked under his legal supervision since 2007 and continue to do so today. Sam is not only a fine attorney but considered by many, as a man of high integrity and character. I strongly recommend Sam Whitley if you are looking for legal counsel.”

    B.B.