Flotation, or the process of "going public," is a strategic move involving the issuance of shares available for public trading. Going public has various benefits, including access to a broad new source of capital to help fund a company's operations. When a private company's business operations become more mature, flotation is often considered as a way to drive future growth. In such cases, additional capital is needed for activities like expansion, acquiring new equipment, inventory, research and development, or even paying dividends to shareholders. It also helps to produce higher liquidity for current owners by providing a “liquidity event” and greater access to potential buyers.

The main drawback of going public rests on the intense scrutiny that public companies face from regulators, investors, the media, and other concerned stakeholders. Initial public offerings (IPOs) are subject to the oversight of the Securities and Exchange Commission (SEC) and must provide certain financial information. Once a company decides to pursue flotation, there is also the issue of getting listed on a stock exchange, which requires significant financial and legal resources to do so.

Flotation is an exciting and potentially rewarding experience, but it also requires significant thought and planning. The process of flotation is complex and must be approached with an understanding of all the potential costs and benefits associated with the move. Companies should perform careful research to ensure they are making the right decision, and to ensure that their processes meet regulatory and financial requirements.