An entrepreneur has to weigh the pros and cons of going public in the light of the company's plans and goals by holding early discussions with professional advisors like consultants, accountants and lawyers to have more specific considerations and perspectives.
The Pros
1. Alternative To Bank Borrowing As Source Of Financing Bank loans have been the most traditional means of financing for most SMEs. An IPO provides an alternative to relying on bank funding which normally requires fixed repayment commitment including interest.
On the other hand, there is generally no need to repay the capital provided by shareholders. Dividends due to shareholders, if any, are declared at the discretion of the management and the company is not subject to fixed payment terms.
2. Ready Market For The Company's Shares
Investors may buy or sell shares of a listed company in the stock exchange. The entrepreneur can thus reap the fruits of his labour by selling his shares in the open market.
3. Ability To Conduct Merger And Acquisition (M&A) Activities Using The Company's Shares As Consideration
As there is a ready market for a listed company's shares, the company is able to use its shares in place of cash as payment for the acquisition of a potential target company. Similarly, the market value of the company could form the basis of a valuation of the company should the entrepreneur decide to sell his stake in his company, or merge his company with another.
4. Enhanced Image And Status Of The Company
A listed company is generally seen to be more prestigious, stable and financially viable than a private company, having passed the scrutiny of regulators in the listing process. Certain companies, especially MNCs, may hence give preference to listed companies in awarding contracts. A listing in this instance thus opens doors to more opportunities for a company.
5. Ability To Attract And Retain Good Staff And Professional Managers
The enhanced image and the liquidity of the company's shares means that a listed company is able to implement an Employee Stock Option Scheme (ESOS) to attract and retain good staff and professional managers.
In an ESOS, staff are awarded options which can be converted to shares in the company. The employees will be motivated to work for and align their interests with the company in effecting an improved share price performance.
The Cons
The cons are related to the way the business will be conducted after a listing:1. Less Flexibility Or More Bureaucracy In Making Major Decisions
The main adjustment that an entrepreneur would have to make is the significant loss of autonomy in running the business of the listed company. Major decisions are to be made with regards to the interest of public shareholders, some of which would probably require shareholders' approval.
Operationally, interested-person transactions, i.e., business dealings between the listed company and other companies controlled by the directors, CEO, or controlling shareholders (and the associates of such persons) of the listed company would similarly require shareholders' approval.
Shareholders of the company would also need to be mindful of the accumulation of shares in the company as there may be take-over implications.
2. Increased Compliance Costs
A listed company is expected to comply with various stringent regulations, especially in relation to accounting and disclosure requirements that would result in higher standards of information and accountability to public shareholders.
A board of directors (BOD) comprising executive, non-executive and independent directors needs to be appointed for a listed company. The BOD acts as the guardian and protector of public shareholders' interests to ensure that the company is well managed and that shareholders' interests are not compromised.
Listed companies are also expected to comply with the Code of Corporate Governance issued by the Corporate Governance Committee of Singapore, to disclose their corporate governance practices and provide explanations where they deviate from these best practices.
These requirements will result in more management time, effort, and compliance costs for the company post listing.
3. Risk Of Being Taken Over
Every listed company is susceptible to takeover raids. With the dilution of control from a public listing, the entrepreneur runs the risk of his listed company being bought over to the extent of percentage of shares not owned by him. The entrepreneur would then have to contend with other shareholders that may be less than cooperative.
4. Increased Pressure For Short-Term Performance
With public listing comes closer scrutiny from stock analysts and market players who directly or indirectly drive the share price performance, demand continual good financial performance, and expect dividend pay-outs. The entrepreneur may be pressured to deliver short-term profits or results that underpin the share price performance at the expense of long-term growth and development of the company.
5. Commitment To Investor Relationship Management
Investor relationship management is crucial in communicating to the market the financial performance and decisions of the company. However, investor relationship management demands more management time and effort.
Liquidity - Investing in a public company is much more acceptable by investors than private firms.
Value - Public companies can experience remarkable growth through stock appreciation. 
Access - A public company has a higher level of access to capital markets and other resources needed for growth. 
Book Building is basically a capital issuance process used in Initial Public Offer (IPO) which aids price and demand discovery 
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IPO Consulting involves a turn-key kind of solution to all your company's IPO needs, as in itself IPO means the new offer of a company's shares to the public in the country's capital markets. Initial Public Offer