Are You Taking Your Company Public? Warning: Hang With The Big Boys Or Get Crushed Let’s see, for the gargantuan corporate conglomerate with bottomless pockets, flooded with cash there are the options of and IPO on the NASDAQ or NYSE but for the remaining 99% of corporations to intelligent and seasoned to fall for the venture capital equity snatch yet in an industry that isn’t appealing to private investors there is the OTC market.
The OTC market is pretty much comprised of the smaller exchanges such as the OTCBB, London Exchange, Frankfurt Exchange and of course the ultra-pointless and almost laughable Pink Sheets and Toronto Exchange. The strongest of the OTC ‘type’ exchanges is the OTCBB which delivers strong trading volume, minimal financial qualifications for listing and with the PCAOB audit, 10k and 10q filings; shareholders always have the ability to check on an SEC compliant process of financial filings for a solid grasp of the truest position of the company.
One of the most attractive aspects to the OTCBB is that many consider it a ‘pre-NASDAQ’ structure which makes it easy for a company with the proper daily trading volume, share price, corporate criteria etc. to bump up to the NASDAQ, the main advantage being access to a heavier trading volume and more access to funding options to trigger growth and stability.
The biggest downside is the process of getting on the OTCBB. There are countless steps to achieve that almighty symbol and only a handful of consulting firms have a full comprehension of all the intricacies involved in not just obtaining a symbol for trade but everything else during the pre and post IPO timeline that makes a corporation successful both short and long term.
With 20 years in the industry I can honestly say that there is only one company that has mastered this exchange and has a track record of success that is so off the charts that it is virtually impossible to hire them as they are now established enough to take on deals for equity as opposed to fees which places them in a premium and almost untouchable class all to themselves.
Princeton Corporate Solutions Inc. now based in NYC takes their clients through the most rigorous pre public structuring phase that they will transform even the most trivial of aspects to a company to strengthen their ability for globalization, scalability and IPO success. They have a ‘political tie in’ solution that will catapult an organization to the premier power position in the industry. PCS’s strategic alliance facilitation will have you eating lunch with the most influential international players in your industry and as for their globalization process, let’s just say that CEO, James Scott is connected from top to bottom in both US governmental affairs as well as European Union and Asian proximities, you’ll be an international economic machine gun in a land of bows and arrows. The positioning and partnering process of a company is crucial to a solid public existence.
For those of you about to take the dive into the public market place for capital and are considering the OTCBB as an option hire a consultant with a team. This team should have, at a minimum, PCAOB firm, transfer agent, Edgar agent, S1 attorney, IR group, crisis management agent and solid market maker. The good consultants will stick to SEC solicitation compliance and never solicit new business with previous trading symbols as most seasoned consultants are not licensed securities dealers so that they can assist their clients with a full range of solutions without having their hands tied with federal restrictions.
While the above represents the minimum requirement when you consider an IPO facilitation firm, the reality is that will only boost your chances of getting through SEC comments, audit and then the FINRA issuance of a trading symbol. To survive and thrive as a public company you’ll almost certainly need your consulting firm to take over the following restructuring aspects to your corporate model: board of directors and advisory board overhaul, C-level executive qualification and hiring, legal team interview and selection, corporate alliances, international scalability plan, government introduction solutions for involvement in agenda driven processes, political lobby introductions for furthering congressional and senate member corporate economic involvement and of course PR (and this is only pre public).
Post public you’ll need an investor relations process customized by the securities gods and facilitated by a team of prophets with connections that, right now, will seem almost superhuman. To capitalize off of your new public company you need trading volume which doesn’t happen by itself. You’re going to need newsletters, shareholder update processes, webinar productions, phone room participation for introducing your company to the marketplace, road show strategy, radio, TV and internet expert panel involvement and much more. Unless you can do this, stay private, you will never make as a public company without this.
Lastly, your quarterly and annual reports tell the current and potential shareholders about your growth goals. Oh, you didn’t think that you could grow your public company organically did you? No sir, ‘mergers and acquisitions’ is the name of the game for growing at a pace that will keep shareholders and bring in new funding opportunities. Your consulting team must put an M&A process together for your company complete with both identification as well as facilitation.
If you’re going to go public, you may as well stay public. Get it right the first time and you’ll grow faster than you’ve ever dreamed possible.