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Taking a company public is not as glamorous as it may seem. The hoops that are required to jump through to get there, takes a lot of effort, time and money. Getting all of your financials in order is an important step to taking your company public, and that takes time. Hiring an investment banker, costs a lot of money. And getting the SEC approval takes time and energy as well.
So this is the basic synopsis of how a company goes public. First of all they have to get their financials in order, and all their reporting up to date, and they have to employ an investment banker. Then you have to get SEC approval SEC of course is the securities exchange commission. Then you choose your your stock exchange.
Once the company goes public, you are no longer the owner of the company. Now the shareholders are the owner of the company. If the shareholders own the company, do they also control it? No the control is kind of in two different pieces. The control is in the board. The board essentially represents the shareholders and represents a shareholder's interest and they have power to fire or to hire people on the leadership team. So the CEO the CFO and the leadership. So if the board doesn't like what the CEO or the CFO are doing, they can replace them. And that's kind of like the balance of power that happens there. But shareholders also can vote by selling their stock.
In the end, going public is not a spur of the moment decision. It takes time and energy and a lot of money. You must be prepared to give up ownership and give up the chance to make all of the decision on your own.
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