FitEquip Ltd. (FEL) is a manufacturer of fitness equipment. It has three product lines, but its rowing machine represents 75% of total revenues. As a result of the COVID-19 pandemic and the continuously growing number of in-home gyms, FEL's sales have continued to increase, and the company has decided to raise $30 million for a large expansion plan that it wants to start within in the next few months. FEL is a private company owned equally by four shareholders who all work in key management roles and are directors for the company. There are 2 million shares currently issued and outstanding. Sheryl Kinrade is the CEO and she has recently met with an advisor to assist FEL with raising capital. Sheryl indicated that she had been approached by a large private investor, HGI Corp., (HGI) that would be willing to invest the funds as a private placement. Sheryl met with the representatives of HGI and was impressed with their knowledge of FEL and its industry. However, the shareholders of FEL have also been thinking of going public to raise this capital. Sheryl wants to understand the advantages and disadvantages of raising funds, using a private placement compared to a public offering. Required: Prepare a memo to Sheryl with the information she has requested and make a recommendation.