Additional Authors: James Alford
Foreign companies enjoy a number of benefits by becoming U.S. public companies. These benefits include increased visibility, access to the U.S. capital markets, and the ability to offer equity-based compensation instruments to key employees. However, companies may encounter obstacles when accessing capital in the United States. Becoming and remaining a U.S. public company is expensive and time-consuming and may require changing a company’s operations in ways that a company would not necessarily choose absent U.S. requirements. Registering as a foreign private issuer (“FPI”) affords foreign companies the ability to strike a healthy balance by providing access to the U.S. capital markets, while at the same time permitting foreign companies to benefit from certain disclosure, reporting, and corporate governance accommodations.
Read more in our What’s the Deal? guide here.