Tag Archives: capital

Take Your Business Public: How To Have Investors Begging To Invest!

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Take Your Company Public: Have Investors Begging To Invest! As the economy worsens and banks continue to crash and the US dollar is losing its place as the world currency American entrepreneurs need alternative funding solutions that cater to ongoing capital needs that take advantage of the international finance stage as opposed to domestic institutional lenders.

Many companies, for the first time, are considering going public as a viable option but where does one start on this trek? How much does it cost? What type of lawyer and consultants do I need? Who sells my stock? Etc.

The reality is, going public is fairly straight forward if you have a product or service that lends itself to an invest-able option to global financiers. The process of a start-up or small/medium size business going public usually begins with the basic business plan (50 to 100+ pages in length) and a Private Placement Memorandum (Regulation D Rule Exemptions 504, 505 or 506).

The company would then do an initial round of funding with accredited investors with a mini/maxi built into the offering circular that makes it possible to reach a simple benchmark that would allow the company to start using the investment cash for growth via public offering using OTCBB (over the counter bulletin boards); this is the quickest and cheapest way to go public being that 99.9% of companies don\’t have the liquidity and time in business to qualify for an IPO. There are several things that a company can do to make your capital raise a pleasure and not a nightmare. Start with a solid market maker that will commit to putting forth a dominating effort to sell your shares. The next thing you need to do is put a face and a voice to the company. Hire a publicist and pick an executive, usually the CEO or CFO, set up, daily interviews on radio and TV to promote the company and as you do this you will begin to see instant results. Another thing is to send out articles and press releases focusing on every single positive point, contract and strategic partners, feed that publicity machine. Branding is another powerful aspect to raising capital. Make your brand and image something that people see on online and in magazines. A solid publicist will do wonders for you. Get your press releases going on the wire to broker dealers and market makers and other stock promoters.

Fund raising has been complicated by unethical companies that are looking to create capitalization angles for themselves whether they are the business raising capital or the broker dealer buying and selling their stock. Done honestly, there is no reason a company with a viable business concept can\’t be successful in raising capital quickly and easily being sold on the public market.

Take Your Company Public, the easy way Call Princeton Corporate Solutions at 267-233-0183 PPM, OTCBB or IPO fund raising is easy with the right consultant.


Initial Public Offering Primer For Investors

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Taking a privately held company public is done via an IPO (Initial Public Offering). It wouldn’t be an overstatement to say that an IPO is one of the important events in a company’s timeline. The company issues a specific number of share certificates at a stated price. Each shareholder then becomes part owner of the company, and each share can be bought or sold on the stock market where the company is listed.

In order to get to this point where the company gets listed, there are a huge number of requirements that the company has to fulfill. There are compliance issues, filings to regulatory bodies, and disclosures of the company’s financial condition. Once fulfilled, the benefits of a well subscribed IPO are massive and the company gets a big boost, in terms of cash and reputation.

The sudden influx of capital with no strings attached helps keep the company’s current business on track, and puts its growth plans on a high-speed track. Liquidity problems which can derail a company’s existence disappear, and lenders can be paid off in full. The business also gets a boost from all the hype over the IPO and customers and business partners will start looking at the company with greater trust.

The first concrete step towards an IPO is for the company to file a registration statement with the SEC. This statement, along with a prospectus for the IPO, tells the company’s entire story. It helps investors (and the SEC) decide whether the company is a good horse to bet on.

Underwriters and the company’s accountants are required to work together to fulfill these regulatory requirements. They will provide the management with advice on shifting from a private decision making process to a public company answerable to the board and shareholders. The most important thing the underwriters do is help decide the price and number of shares that the market can absorb.

Once the IPO goes through, the company has certain new responsibilities. This includes making public the quarterly financial results, filing statements with the SEC for anything major that impacts the company and its operations, and the AGM. At the stockholders’ meeting, important issues are discussed and voted upon, including the composition of the Board and the top-level management. This is one reason why many companies hire new mangers after an IPO, to deal with issues specific to public companies.

How an IPO fares mostly depends on the company’s prospects and that of its sector. But IPOs fail all the time inspite of having sound basics and strong revenue models. There are many factors in play here, including the share pricing and quantity, the market and the timing of the IPO.

In Canada, for example, IPOs tend to be smaller than the ones in the US. They are also slightly under-priced because the market doesn’t have the same strong appetite for risk. European IPOs have to look at a lot more factors and have a smaller window, since problems in any EU member nation can affect markets in all the other nations.

Back before the dotcom dustup, any college kid with a website could file for an Initial Public Offering and rake in the big bucks. After the latest recession, things are now every different. Investors need a company with significant assets and long-term growth prospects. The regulatory requirements too are a lot tougher, but at the end of this long hard road there is a huge pot overflowing with shareholder funds.

In order to grow and expand, many companies will go through the IPO How process and make an Initial Public Offering (IPO) to the general public. A new IPO Prospectus valuation is usually made, and Canadian IPOs are becoming more common nowadays.