Companies decide to go public for many different reasons: expansion, need for capital, exit strategy, acquisition facilitation, globalization etc. But what are the real advantages to going public? First, let’s go over the disadvantages. Your life becomes an open book and as an executive your spending habits and failures will be a matter of public information with your annual and quarterly filings.
You’ll be accountable to shareholders. You’ll have a board whose main interest is the company and the shareholders no you or your need for a new luxury car, financial bonus or need for a quick loan from the company that was once possible and easy when your company was a sole proprietor entity. You need trading volume and without it your stock is worthless and your company becomes a blind, deaf, mute, quadriplegic (a bit extreme but you get the point).
The advantages are numerous if your company is ready for the public realm. With a solid trading volume, minimal dilution of stock, solid executive management, an active board of directors, powerful strategic alliances and the ongoing advisory of a strategies consultant your company can expand globally, identify and grow through acquisition and subsidiary mergers, purchase entities and services with stock to retain cash flow.
Banks and other institutional lenders will make more funding solutions available. Your exit strategy is built in and turn-key.
The most successful public companies have a few common themes built into their infrastructure. They have recruited a proven and tested CEO, CFO and COO with professional pedigrees and track records that are recognized in the industry and media and will bring with them a strong following of partners and solution mechanisms that will typically yield instantaneous, empirical results on behalf of the company. The board of directors is restructured so that major industry enhancing components are represented such as industry niche legal, financial, distribution, domestic and international. Each of these board members will put their contact portfolio to work for your company for immediate and long term growth and stabilization. One other aspect that all prosperous public entities have is a strategies consultant that keeps everything in line. This individual is also what is referred to as a ‘fixer’.
This professional will typically stand in the background constantly analyzing every aspect of the company for weak points and correct them. Whether it be a lazy board member, potential acquisition, CEO not pulling his/her weight, potential legal issues etc., this strategist has a keen eye and typically a massive contact base that, when put into place can correct virtually any situation quickly and seamlessly.
Going public is a great strategy for the right organization. Having all your ducks in a row pre and post public is the key to a successful offering and public markets longevity.
Find out how to globalize your business or You’re your Company Public , Find out how to Structure Your Company to grow fast and raise capital
Filed under Blog by James Scott
There is a huge gap between a public company that is exists and thrives. An company that is merely existing has a stock price that is is stabilized by constant promotion and fund raising with every bell and whistle, warrant and promotional gimmick as the company’s business model is not conducive to inner and outer expansion, globalization or general scalability.
The public company that thrives will have an IPO that is both promotional and informative and will show a clear cut and active plan for growth via acquisitions, mergers and both domestic and international alliances. Public companies that thrive will have a team of consultants making introductions, setting up round table meet and greets to introduce and build rapport with funding players and potential partners where there is a strong synergy. The share price for the ‘thriving’ company will be triggered naturally by press releases in combination with promotion to investors by updating current and potential shareholders of these benchmark achievements.
Another massive element that is all together ignored 99% of the companies out there, even thriving public and private entities is the almighty legislative tie-in. Get to know your congressman, senator and all their affiliated groups. Become a permanent fixture at their fundraising events and look for angles that would help create a win/win situation for your political counterpart when his activity wanders into your particular business genre. Offer to consult with them to help them navigate the tepid waters of your industry without making the amateur mistakes of those not completely submerged in the industry. Be their industry expert, adviser then publicize your efforts in a way that helps both you and your political alliance.
Globally there are, maybe four or five consulting firms that specialize in the above. A full service, turn-key solution facilitating merger and acquisition identification and facilitation, all aspects and angles of investor relations, globalization and alliance identification and facilitation, professional executive placement into your organization, powerful board of director facilitation and more.
Though the above may sound like the consultants lack focus, to the contrary they are extremely focused and are well versed in walking into an organization and mapping the structure. What are the weak points and what are the strong points? And then they put together a strategy to build the structure that will gain rapid traction that will stick with expansion and funding benchmarks that are realistic, scalable and achievable. Taking a company public in today’s economic environment is fickle and impossible for the untested to succeed. Find a consultant to put together a team that will launch or maintain your corporate stabilization and expansion strategy properly.
Let’s change directions for a moment. If you are a seasoned investor looking to diversify, here are some guidelines that will help you find the best deals.
Investing in an IPO traditionally offers higher yields and a Pre IPO can offer 200%+ returns if the structure is solid. By structure I am referring to founders, C Level executives, board of directors, compliance legal team, pipeline contracts, overall profitability and dilution in the float (just to name a few items). Finding the right transaction takes more than just some advice from your broker, though their efforts may be pure in intent, they are, for the most part, unqualified to advise on such investment actions.
Unless your investment advisor is a strategies and structuring consultant with a ton of experience in globalization, they may be licensed to sell you securities but they are not qualified to strip an opportunity to the bone and reconstruct it looking for errors or chinks in the armor to justify a solid transaction or a pump and dump pipe dream.
Most brokers make a tremendous effort to evolve out of the burnout genre of pitching and selling stock and more toward mergers and acquisitions where the real money is. Part of M & A is merging private companies into public entities, restructuring the company, stock and management and then turning out the entity with a new symbol and price and pounding the pavement with multiple genres of IR simultaneously. Selling shareholders who invested in the Pre IPO phase of the company will create the float and make the quickest returns with minimal risk as they will typically buy their shares at a deep discount to the retail price. Next, with a controlled incline of the stock price the investors who buy at the road show outings will make nice chunks of change and may receive some type of warrants.
Using online mechanisms for stock promotion such as social media, webinars, opt in email, banners and other white hat processes will assist with daily volume. Phone room buzz generation materialized by phone rooms calling around and introducing the company and it’s stock symbol to investors and market makers allows for eyes to be focused on the company and in return will result in both short term and long term investors. Then you have the road show which are also referred to as ’round table’ meetings. I’m not talking about the free suppers in Manhattan for free loaders and wannabe’s; I mean a targeted audience of 15 to 20 tops, investors who are ready to listen, ask questions and buy.
If you are considering investing in a Pre IPO, make sure that the company has a clear cut plan for all the above promotion. If the company structure is sound and the promotional element is there, chances are it’s a safe bet for the short term. Legislative contacts, globalization, board member alliance facilitation and a professional C level staff will be the critical factor to take the company toward long term success. Before making an investment of any kind consult a licensed professional.
Want to find out more about Taking Your Company Public, then visit Belvedere Global Strategies Corporation’s site on how to choose between a Reverse Merger or S1 Filing for the best results
Filed under Blog by James Scott
Going public, the be all and end all to economic relief for the right companies. If you have a solid business process, profits, a solid infrastructure and scalable business model then yes, going public may be just what you need to get to the next level. Make sure your IR is set up and budget long term for this solution and keep your C level executives on TV and radio and other mass publicity venues that will have your stock price above the name of the company, below the executives name.
But if you are going public because you’re broke and a startup, the combination of the two is a stew that guarantees failure. Investors will poke holes in your business model, corporate infrastructure and board of director pedigrees faster than you can say ‘pump and dump’ and when they do, know this, it will be public and it will be messy.
When going public you need to make sure that your executives are the most elite of the elite and that each board member is serving a specific purpose and contributes in specialty niche as well as offering a recognizable name, whether the name be their name or the company that they represent.
Your executive lineup needs to read like the who’s who of the industry. Your strategic alliances need to look like an ocean of executive samurai lined up to trample any company that could represent even a modest competitive notion.
Your attorneys need to instill fear in defamers and your compliance auditors need to be squeaky clean with a reputation for never bending to the ease of shortcuts. These things, when combined with each other will create massive investor confidence with rapid volume trading growth and an overall business model that will thrive in the public marketplace.
Want to find out more about Taking Your Company Public for $0 Out of Pocket, then visit Princeton Corporate Solutions’ site The Kings of IPO
Filed under Blog by James Scott
Are you a business owner raising capital with a Regulation D Rule exemption (504, 505 or 506) also referred to as a Private Placement Memorandum, PPM or Offering Memorandum? If you are using this mechanism to raise capital then you’ll, no doubt, have to have a solid comprehension of the most distinct and important part of the Private Placement Memorandum referred to as the ‘Offering Circular’.
When your consultant or attorney is asking you for details on everything from business location to management, from dividends to risk details, you need to make sure that this information is complete and accurate. You’ll need to audit the documents after they are completed. A solid Offering Circular has kept countless companies from being sued by investors that didn’t get the investment return they were anticipating.
While the business plan is meant to grab the initial attention of the investor or funding source, the Offering Memorandum is meant to spell out the down and dirty details of the venture so that you are protected from lawsuits down the road, while simultaneously exposing the various ins and outs of your venture to give a ‘reality check’ to the investor before they hand over the cash.
The offering circular needs to be powerful yet very compact without the redundancies of using space to say the same things over and over again to pull the investors attention from the negative to the potential profit margins or management’s impressive pedigree. With all this said, yes it’s true the offering circular is one of the parts of a PPM spells out the technical aspects of the enterprise with a focus on inherent risk of investing but this can be done in a balanced way to also demonstrate the positive aspects of your venture by giving solid descriptions of your management team and, in place, distribution centers and contracts in place ready for capitalization.
When authoring the offering circular demonstrate the risks with a well balanced demonstration of the system in place to overcome these risks and dominate your market niche.
Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Filed under Blog by James Scott


