Take Your Company Public: Hire a Turnaround Consultant First

Posted by | Posted in Traffic For Websites | Posted on 30-01-2010

Most companies who are on the venture capital trail are not set up properly to attract investors. When an investor looks at your business plan and private placement memorandum they are looking for certain things. Of course funding sources look for the obvious, a solid business model, positive cash flow, industry genre with solid future growth, recession proof business (if there even is such a thing) and minimal debt.

Countless companies are turned down for funding because they lack the basics such as: an advisory board, board of directors, solid executive staff with a well groomed pedigree, reasonable share price, business plan and PPM that spell out the risks for the investor and an original marketing strategy that covers all the angles. These are just a few of the most common mistakes that companies make out of naivety and by not taking the time to hire an expert to properly structure them to make the entity appeal to investors.

Seasoned expansion and turn-around consultants can step into a company and immediately zone in on the issues that will hinder a client’s investment magnetism. Often times it only takes 2 to 3 weeks to completely reorganize a company to make it stand out like a beacon in the turbulent finance industry. If you are seriously considering the idea of raising capital with a private placement memorandum, traditional institutional loans, venture capital or a public offering don’t be penny wise and dollar foolish.

Read More

Take My Company Public and Use Securities For Loan

Posted by | Posted in Marketing and Advertising | Posted on 07-01-2010

Many entrepreneurs and executives want to move forward with the process of going public merely for the ability to raise capital through the sale of stock. They usually don’t think of the strategies necessary to keep the momentum going such as how much equity to give up initially, how much equity to sell ongoing, how to capitalize off of the use of the securities as collateral for loans and lines of credit and so on.

One of the most profound strategies companies can use to retain company equity while capitalizing off of their public entity is to put up portions of their securities as temporary collateral for loans and to use securities to grow through acquisition of strategic alliances.

Stock should be looked at as cash and designated for appropriate purchasing strategies. Stock monetized through collateralized lending can work wonders as long as the exit strategy is in place and secure. Your attorney should be well versed in this activity and audit the contract for convertible aspects which could strip the transaction of its advantageous nature.

Read More