Washington DC IPO Lawyer

Watching your small business grow from a start-up to an established presence in the marketplace is an exciting accomplishment. During this exciting time of growth, it may be wise to consider undergoing the initial public offering (IPO) process. There is a limit to how large a company can grow while remaining private. Limitations on investors and capital can limit a company’s market share and physical locations. An IPO allows members of the public as well as investment firms to buy shares in your company. This can be a quick way to raise immense amounts of capital.

A Washington DC IPO lawyer could guide your company through this process. Our attorneys could oversee internal changes in the company to ease the transition, ensuring compliance with the SEC and other regulatory bodies. An attorney could also assist with potential mergers that may be part of the IPO process.

Why Should a Company Go Through the IPO Process?

All corporations begin as privately held entities. They may have investors, but those investors provided money as the result of private inquiries and negotiations.

While this structure may be useful for many small businesses and start-ups, it can limit growth. Obtaining new capital for expansions can be difficult, and the nature of small businesses can make it difficult to obtain increased exposure.

Offering company shares for sale to the general public through an IPO can solve many of these problems. Allowing outsiders to buy shares in a corporation can result in massive influxes of capital that can help with quick expansion. However, IPOs are not right for every company. Typically, companies must already hold substantial assets for underwriters to even consider offering an analysis. As a result, participating in a merger with another corporation may serve as a way to quickly increase a company’s profile and assets. The Code of the District of Columbia § 29-409.02 provides the rules and requirements for corporate mergers of entities registered in the area. A Washington DC attorney could help the owner of a small business determine if the IPO process is the right option for them.

An Attorney’s Role in an IPO

Executing an IPO may seem like a job for accountants. However, many essential legal issues can arise during the process. The first concerns how the transition to a public corporation will affect the company’s internal structure. It may be necessary to change the corporate structure and offer stock options to existing employees.

Another common issue involves preparing for the IPO. A successful IPO will attract investors from the general public. It is vital to be ready to send out investor agreements at a moment’s notice. Finally, a collection of local and federal laws will apply to the company now that it is a public entity. For example, the Securities and Exchange Commission (SEC) requires that companies seeking an IPO issue a registration statement. In addition, companies must submit annual and quarterly reports to remain compliant with the federal financial regulations. Hiring a Washington DC lawyer could help a corporation fulfill these IPO obligations under the law.

Contact a Washington DC IPO Attorney Today

Seeing a company transition from a sole proprietorship to a private corporation to an entity ready to file for an IPO is an exciting time. However, this transition requires a deft hand concerning the new legal challenges that may arise. In every situation, companies must evaluate how going public will affect their internal workings and employee relationships. This may include mergers that allow companies to have the assets and name recognition necessary for a successful IPO.

Once you make the decision to pursue an IPO, various local and federal regulations will apply. This includes filing paperwork with the SEC as well as completing a full underwriting to determine the value of shares and when they will go up for trade. Our Washington DC IPO lawyers are ready to help. We could take the necessary steps to protect your company during this time of transition and ensure that an IPO meets all the necessary regulatory requirements.