1. The United States and the Reverse Merger
... more likely for firms to ask for a higher offer price and does not cause a substantial share dilution, which means that the company valuation rises as it goes public. (Gleason, Leonard & Roy 2005, p. 62) By going public, the firm is able to raise additional capital through equity financing and issuing shares to investors directly. In this case, it becomes much easier for ... costs. In terms of company valuation, IPO normally offers an undervalued share price at first to attract investors, and hence there would be no increase in company valuation. (Gleason, Leonard & Roy 2005, p. 62) Mor...
- Word Count: 2733
- Approx Pages: 11
- Has Bibliography
- Grade Level: Undergraduate