Advantages!
Potentially higher valuation than is available in a private offering.

Increased net worth of the company, facilitating future debt and equity financings.

Increased future access to public markets.

Greater ability to accomplish stock-for-stock acquisitions.

Public Image Increased publicity and attention from the investment community.
Heightened visibility may provide a competitive advantage over privately held competitors.

Increased ability to attract and retain employees through use of equity incentives such as stock option and stock purchase plans.

Employee pride in company may increase.

Disadvantages:
The current shareholders' percentage ownership of the company will be diluted in a public offering.
Control of the company may shift and the company could face an attempted unfriendly takeover. The market may view certain antitakeover devices as unacceptable in an initial public offering.

Two outside directors are required if stock is to be listed on the Nasdaq National Market or the major exchanges.

Earnings per share will be diluted.

Disclosure The company will become subject to periodic reporting and certain other requirements of the Securities Exchange Act of 1934 (the "Exchange Act").
SEC financial statement disclosure and audit requirements will apply.

Stock exchanges and Nasdaq will require public disclosure of significant events.
Management will spend significant time in public relations and in informing the investment community about the company and its recent developments.

Market Pressures Marketplace pressure may cause the company to focus too much on short-term results to maintain stock prices, forgoing risks necessary for future success.
Public shareholders may demand dividends, even though management believes reinvestment of earnings is better.
Going public may require organizational