Going Public?

[Flipx99 5,000+ posts]

I wonder how come many car audio companies don't go public? There must be some money in it because new small business seem to pop up every week. The only audio company I have found to be public is DEI and Pioneer. Kenwood and Alpine and both those are pink ticketed.

It would seem with the extensive R/D costs that many companies would go public, or atleast issue public debt. Where do they get start-up funds without it? I don't think the SBA gives out too many loans to these types of companies because they are such high risk.

Actually, I seen a few more. Rockford Fosgate and AudioVox...they are all losing money.

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[wErd 5,000+ posts]

advertising costs money, if companies started having commercials on TV or ads in a magazine, or whatever it would drive the cost of the product up b/c those ads would have to be paid for.

Ex: Nike.

 

[hcoronado 10+ year member]

for a comapny to go public there are alot of factors involved

1- debt free

2- be a multimillion dollar (a year) company

3- the support of the stock holders (this means after all details have being worked out) for the best interest of both the company and the stock holders.

4- growth!

5-expansion

6-long term growth

Some companies prefer to merge (depending on how many board members they have i.e owners) other prefer to cash out and sell what ever technology they have or use.

Most companies preffer not to go public until most of this things ocurred.