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Why list your company in Europe or Hong Kong instead of the US?

Written by Haim Mayan

Topic: Business ConsultingPublished February 2, 2012
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If you’ve decided you’d like to take your company public, but don’t know which stock exchange to choose, Start-up Investment advisors can help. The US has compliance costs associated with the Sarbanes-Oxley Act passed in 2002, which regulates how businesses run. The results of this act for businesses in the US are that detailed financial records may be audited by the government and the penalties are high for alleged corporate misconduct. This is one of the reasons the European and Hong Kong markets have become more attractive to businesses hoping to go public. Hong Kong is of course strategically located for all of the Asian markets. It can take advantage of the growth in the mainland Chinese markets. The Hong Kong exchange benefits from tax advantages, a strong regulatory and legal system, and streamlined International accounting standards. According to Start-up Investment, by listing in a European market, your company has access to millions of International investors that shy away from the higher broker fees they would have to pay to invest in an American company on the North American market. The European markets are appealing for going public, the Frankfurt Exchange ranks third in terms of volume, behind New York and NASDAQ. Germany has a most attractive investor pool. Germany is neck and neck with China on trade surplus rankings. In 2011 Deutsche Börse bought 60% of the NYSE. And Germany has the fastest rate of growth and the highest income per capita in the European Union. The regulations are more relaxed, there are no monthly or annual filing fees. Because there are tax advantages in Europe for holding on to a stock for a particular period of time, European investors hold on to their stocks for the long term, and stock prices stabilize as a result. German investors get a tax break for stocks held over a year, so this encourages retention of stocks, and less day trading. Start-up Investment advisors are ready to help and advise your company how to sort out the pros and cons between each exchange and choose the best one for your company to go public. Consult with Start-up Investment, a firm that knows the markets well, and has the experience to advise you, based on what’s unique about your business and it’s needs.

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Welcome to Start-up Investment, The Only companies that clearly communicate their products, activities and results will gain the confidence of their shareholder. We also assist our clients to go public and obtain capital through institutional road shows and other methods.