Posts Tagged ‘go public’

Go Public – How To Structure Your Company For Venture Capital Investment

Thursday, July 8th, 2010

Business Owners: Build A Corporate Structure That Investors Love! Ok, you’ve decided to go after investment capital but you’re not sure where to start. Here are the basics that you should pay close attention to before putting your company in front of investors.

First and foremost you need to perform an industry analysis that answers the questions pertaining to where you are in the industry and who are your competitors. It doesn’t matter what product or service you offer. You could be selling underwater sock fitting kits and there is a competitor and industry leader somewhere in the world. Don’t be so naive in thinking that there is no competition or that you are at the pinnacle of your industry. Show your audience that you’ve done your research and that you’ve identified the players in your market.

Next get your executive team together and it better be the who’s who in your industry. If you can’t attract the upper echelon of your industry genre then you need to do some serious PR on behalf of your individual executive team to show the public what they are made of. Brand them as the up and coming powerhouse executives in the industry. Publish their articles and knowledge on industry blogs and article submission sites. When a funding source initiates general due diligence you need to shine like a lighthouse in the fog. Each and every executive team member needs to have an image that screams power, success and investor security.

The next thing you need to do is take a serious look at your board of directors. Who is on your board, what is their compensation and is there someone that is a better fit for formulating strategies and alliances than those who are currently populating your director staff.

One of the main reasons that investors turn down companies for funding is because they lack the backup of industry players in connection to strategic alliances. You need to identify and contractually reach out to companies that will enhance your overall business strategy. Your minimum goal should be 10 solid, aged companies that have already branded their names in the marketplace and are willing to add you to their mix of advertising and ongoing strategy and they will expect the same from you. Show investors that it’s not just you treading water in the industrial whirlpool and that you’ve built a life preserver of alliances.

Now you are ready to write a business plan and private placement memorandum that takes all the essential elements above and puts them in two well authored and to the point documents that will make an interesting and informative read for investors who have a track record of investment in your particular industry. If you’ve written your own business plan, toss it. If investors are going to take you seriously you need a professionally written business plan that touches on all the triggers that investors are currently looking for.

Next, it’s best to use the Regulation D, Private Placement Memorandum as the vehicle for staying within SEC guidelines for raising capital and you should use a Direct Public Offering as the process for raising the actual capital. Reaching out to friends, family, industrial counterparts and alliances should be the first place you go for funding. If you are lucky the consultant you hire to assist you with the above processes will have a solid database of investors to assist you in your initial, first round raise via DPO.

Last but not least you should consider, even though it’s not a mandatory requirement for a PPM or DPO, getting an independent audit done on your company to demonstrate an objective analysis of your financial reality so that investors can find their comfort level quicker without a prolonged comments stage.

There you have it. These are the basics to what it takes to achieve equity investment in this current market. Get out there and raise some money!

Looking to Grow Your Company? , find out how to Structure Your Company and Grow Fast With an IPO

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Take Your Company Public and Get The Right Publicity

Thursday, December 24th, 2009

Hey you! Yeah you! Do you want to fine tune your publicity marketing plan. Publicity without tapping into the emotions of the individual is just a blur of words and sounds in a language that no one can understand. Publicity that plays the strings of human emotion suddenly becomes the sirens song that brings the masses to your doorstep. Publicity with an aim of tugging at the heart, getting to the root of human desire and the call to action as the solution to all their emotional, spiritual and greedy needs transforms a simple branding message into a ‘come to Jesus’ message at the end of a televangelists tent meeting where the mind and heart have been softened and the masses come clamoring to the front to be saved.

Grabbing into the emotions of the public must be done in a stealthy manner. The publicist or marketing professional must place the media in such a way where the future client is constantly bouncing into the brand message each day.

An extremely powerful way to do this is by understanding the subconscious mind of the client so that their online web search habits can be predicted and patterned so that in every direction they are being politely bombarded with your brand message as the be all and end all solution for whatever ails them.

This can be accomplished by tapping into the various genres of online media such as video, blog, social book marking and press release and article directories just to name a few. Material existence is a blurred vision on a gray wall, the infusion of mind and emotion is what brings color and definition to our reality.

It’s the same thing with business publicity marketing; words are meaningless without the element of emotion which add color, feeling and definition to the message being passed along to the public.

Publicity Marketing, at it’s finest! Call Princeton Corporate Solutions at 267-233-0183 for Business Publicity Power.

Take Your Company Public: How To Go Public Cheap!

Friday, December 18th, 2009

Raising money has become quite a chore in this depressing economic state so entrepreneurs are thinking outside the box when it comes to obtaining funds for their start-up corporations or businesses in expansion. Institutional lenders are a thing of the past, liberal hedge fund lenders are a mere cast skin of what they once were and with the massive infiltration of scams like shelf corporations and public shells leave the minds of individuals trying to raise funds in perpetual skeptic mode. Though the banks have brought small and medium size business lending to a screeching halt, there are still various turnkey methods that one can facilitate in order to raise the optimal amount of funds needed to pursue their venture.

Have you considered taking your company public? Don’t be scared off by the nightmare stories of needing millions in financial backing or the critical and ultra costly SOX 404 audits that can make or break your efforts. There are several ways to raise public capital in a cost effective and rapid turnaround process. If you are considering a public offering in the United States, your options are OTCBB, Pink Sheets, Reverse Merger (not recommended), IPO and Private Placement Memorandum. Obviously the IPO is the most sought after method of raising public funds but it is the most expensive and longest route to funding. OTCBB and Pink Sheets are a great way to raise capital without the expense of an IPO but be prepared to battle investor skepticism and ‘pump ‘em and dump ‘em’ securities scrappers who can have you on cloud nine and swimming in a surplus of cash one day and broke as a joke the next.

The next method that one will run into on their trek to raise capital is the mysterious reverse merger into a public shell. You’ll hear many entrepreneurs talk about this method but few actually understand the intricacies of this process and sadly don’t realize it’s high failure rate until they are sitting alone at their office at 2 am holding their head in their hands when faced with the reality that 99.9% of reverse mergers into shell companies don’t work and they just threw away $200k.

The safest, cheapest and quickest way to raise capital from the public is by way of Regulation D exemption rules 504, 505 and 506. This process is also referred to as a Private Placement Memorandum, Private Placement Memo, Offering Memorandum or PPM. After simply having a professional business plan authored and geared toward raising capital with a PPM, the next step is to see a professional about the Regulation D facilitation. You can pay $20k to an attorney or you can spend around $5k to use a consultant, most companies choose the later. After you’ve had the PPM docs customized, you’re ready to go! Most Private Placement Memorandums only take 2 weeks to put together and file (form d) with the SEC office and then you’re off and running!

PPM’s are becoming more and more popular as informed entrepreneurs are seeking capital but want to hold on to a majority share of their company. If you are trying to raise capital for your small or medium size business or wish to increase your company value exponentially in an expedient manner, start looking into having a Private Placement Memorandum authored for your company. It is absolutely the fastest and easiest way to raise capital for your business without all the expense and red tape of other public fund raising processes.

Want to find out more about Taking Your Company Public, then visit Princeton Corporate Solutions’ site or call 267-233-0183. Go Public fast and easy!

Is Your Business Going Public? Viral Marketing Will Get You The Publicity You Need

Sunday, December 13th, 2009

As a corporate publicist I’m constantly beat over the head with the latest and greatest way to get my client’s brand out to the public in an orderly yet expedient manner. Fly-by-night methods and organizations come and go, yet the original promotional concepts that yield that greatest results are still at the forefront of the publicity industry, they’ve just evolved and taken a different shape.

Catering to the emotional triggers of the populace while weaving a web of information and post hypnotic cues through the cynical conscious minds to the unconscious faculty of legions of oblivious targets (oops! I mean ‘potential customers’) is still the name of the game. Television, the visual stimulus that fed exhausted, lackluster minds with a temporary, emotional escape from reality has been replaced by web-mercials and the fast pace of viral media.

The intellectuals that would gather facts on industry, politics and special interest concepts once supplied by the New Yorker and the New York Times is now replaced by the 24/7 information tornado of Web 2.0. Those colorful ads in Time and the Sunday paper have been overshadowed by interactive flash ads that cater to the senses of sight and sound. And of course the idiot radio DJ that would spit out grotesque and perverted one-liners while simultaneously converting the listeners mind matter to mush has been replaced by special interest audio and video Podcasts.

The reactions and actions of the population have kept the same structure, but the adaptability and ability to absorb messages has evolved. When marketing to the masses the path to the decision making sector of the mind is still initiated with a single stimulus such as an image, sound or scent. When the attention is attracted, keep that initial stimuli active like the hypnotic dance of the cobra, then use the other senses to input messages for instant or future action, in most cases this action is a purchase.

Using radio and TV to promote a business on a shoestring or unlimited budget is like passing up a brand new luxury sedan for a’85 Hyundai. These methods are out of date and should only be used as modest forms of passive branding while the heavy lifting of promotional branding and call to action publicity marketing should be done with online video, social and news bookmarking, press release distribution, blogging, unique article distribution, Podcasts and other innovative white-hat methods that cater to habits of modern man.

Want to find out more about Publicity Marketing, then visit Princeton Corporate Solutions website at Princeton Corporate Solutions

Take Your Company Public: How To Go Public Easily 100% of the Time!

Friday, December 11th, 2009

There are many ways to use capital without using bank loans, lines of credit and other shady methods like shelf corps and bogus platform scams. If you are truly trying to raise capital for your company here are some simple breakdowns of your options with a quick definition for each one:

PIPE: Private Investment In Public Equity this is used primarily by mutual funds and private investment firms where they buy discount stock in order to raise capital, there are two types of PIPE’s traditional where common and preferred stock is issued at a set cap to raise money for the issuer and a structured pipe issues convertible debt.

DPO: Direct Public Offering is when you sell equity shares directly to customers, suppliers and employees.

PPM: Private Placement Memorandum is also known as an offering memorandum takes advantage of Regulation D rule exemptions 504, 505 and 506. This process came into existence with the’33 securities act and popularized in the late’80s, companies can raise money from the public via private placement; there is virtually zero interaction with the SEC after you file form d as long as you stay legal. (most popular form of fund raising).

IPO: Initial Public Offering: extremely expensive, need SOX 404 audits, must have board of directors, quarterly financial reports to shareholders, report heavily to the SEC and 1 out of every 1000 companies that want an IPO actually qualify. I love participating in these but most companies just can’t qualify for one reason or the other.

OTCBB: Over the Counter Bulletin Board is an electronic quote system that is the next best thing if you can’t go public via IPO, there is minimal red tape to start-ups and small businesses and is legitimized by the stringent ongoing reports to the SEC which keeps investor confidence high (these are extremely solid and I suggest this structure to companies when I am hired by their company or legal team as a consultant as a fast, easy way to raise big capital from the public otc)

Pink Sheet: you can look at pink sheets as the Burger King, while the OTCBB is McDonald’s, they are competing OTC mechanisms. Pinks sheets are commonly referred to as penny stock and notorious for ‘pump em’ and dump em’ controversies and a lot of crooked people are involved with this platform. This is not a long term process that will allow one’s company to grow, pink sheets companies are typically short lived but it is cheap to set up but not a professional structure that could be upgraded in time to an IPO.

Reverse Merger: a group funds the filing and creation of a public shell, they then sell that shell to a company that wants to go public, the established company merges it’s entity into the public shell. The sellers retain around 30% equity after they charge an upfront fee of 300k to 1m. 99% of reverse mergers are successful with the merger, but unsuccessful to bring them to trade and the entity basically just fizzles out.

Taking your company public is actually quite simple and inexpensive when you have the right consultant putting the structure together for you. There are countless ways to raise capital quickly and easily. It’s important that you understand your options before you waste time entering into the red tape infested banking system for a loan.

Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!

PPM, OTCBB, IPO, Reverse Mergers and Shelf Corps. Raise Capital Without Credit Checks

Thursday, December 10th, 2009

Real estate investors are constantly on the lookout for innovative ways to raise the capital needed to get the job done. Lack of funds to the real estate investor or rehabber is like an asthmatic without an inhaler, it’s a near impossible existence.

Access to cash is king for the investor and sadly this need is often like the scent of blood to the wolves as hard money lenders and greedy cash rich investors will lend to the real estate investor for such a high interest rate, the real estate investor’s profits evaporate before they can materialize. It’s a depressing reality to be faced with when months of hard work in bird dogging and going through the ups and downs of purchasing a property with decent profit margins results in actually owing money at the end of the transaction.

With all this said, there is good news. Imagine the ability to raise massive amounts of capital without dealing with the red tape of banks or the greed of hard money lenders. This solution is so powerful that it can transform your real estate investing business overnight. This process allows you to raise unlimited amounts of capital fast and easy.

This process is a Real Estate Private Placement Memorandum which is a PPM engineered to cater to the needs of a real estate investment firm while simultaneously helping the investor raise capital within the guidelines set forth by the SEC. There are few other structures available that can help one raise capital in such a rapid and streamline manner.

If you are involved in any level of real estate rehabbing or investing look into getting set up with a real estate private placement memorandum to put your business on steroids. It is easy to raise capital for these structures and will help you grow your business as large as you want it, quickly!

Want to find out more about Real Estate Private Placement Memorandums, then visit Princeton Corporate Solutions’s site on how to choose the best PPM for your needs.