Taking a company public can be a signal that the company is ready to be a force in its industry. However, there are some pros and cons that may need to be considered before deciding whether an IPO is right for a given organization. While going public can be a great way to raise money, it also means a loss of control for the company's owners as shareholders have a larger say in how the company is run.
However, going public can be a way for early investors to enjoy more liquidity in their investment. A public company may also be able to use stock options as a way to entice talent to stay with or join the business. Companies that need more money in the future can raise capital through additional stock offerings. Finally, being a public company is considered prestigious.