Dec 22nd, 2009 Posted in insurance | no comment »
So many companies dream of going public to raise massive amounts of capital, as set up for an exit strategy, to make acquisitions with stock and for many other reasons. While your intentions may be pure and with genuine motives, you’re entering shark infested waters of boiler rooms, crooked attorneys and underbelly consultants who have made careers off of taking well intentioned executives just like you for a 24 month roller-coaster ride while they take every penny you have as your company shrivels up like week old road kill.
Just and honest consultants in the ‘public offering’ industry are as rare as the illusive white elephant. This industry exists in a cesspool surrounded by rose gardens; from afar it looks amazing and an image of a dreamland but get up and close and the sludge and odor are enough to make you run and hide. So what do you look for in a consultant? The best consulting firms are the ’boutique firms’ with minimal overhead that keep a low profile and are made up of 3 or 4 ‘partner’ consultants.
These firms typically have the experience of working with the large consulting groups but for one reason or another have decided to leave and go out on their own. The great thing is, these small groups typically have massive contacts and process your entire public offering in-house. Offering a complete turn-key solution that is managed in-house offers a huge advantage because there is accountability and you can actually build a relationship with the people that are making your dream of a public offering come true.
These ’boutique’ consultants will usually stay on board as growth consultants for the life of the company in exchange for modest fees and a pre-IPO or pre-OTCBB equity position. The large firms will hack you out at the knees and gouge you with fees while they take massive amounts of equity in your company which takes away your bartering chip when you need to offer more stock to the public to raise capital.
The small firms will also work one on one with you to show you how to use your stock to grow through acquisition and other nifty ways to use stock to grow. Seek out the boutique consulting firm and save the attorney for spot audits. Hold on to your cash. Why pay outrageous fees to lawyers when you can pay 60% less with a small consulting firm that will add all the bells and whistles for free and actually get your stock trading, usually in half the time?
Take Your Company Public, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: a PIPE, insurance, private placement memorandum, private placement memorandums, take company public, take company public IPO, take company public otcbb, take company public pink sheets, take company public reverse merger, take your company public
Dec 22nd, 2009 Posted in insurance | no comment »
When fund raising for your corporation or start-up, investors will want their equity distribution in an SEC recognized format like a Private Placement Memorandum, also known as a PPM or offering memorandum. This unique structure makes use of one of the three Regulation D exemptions stemming from the Securities Act of’33.
The three powerful exemptions are Regulation D Rule 504, Rule 505 and Rule 506. These rules carry different criteria that help businesses raise equity funding without all the stringent legalities of an IPO. These rules are defined like this: Rule 506 provides an exemption for limited offers and sales without regard to the dollar amount of the offering.
This exemption does not limit the number of accredited investors, but the number of non-accredited investors may not exceed 35 investors. (An accredited investor is any one investor with a certain net worth and or experience in the purchase of stocks.) All non-accredited purchasers, either alone or together with a designated representative must be sophisticated enough (i.e., have the knowledge and experience necessary) to evaluate the merits and risks of the investment. (An offering company typically determines the sophistication of its investors with a questionnaire subscription agreement.)
Rule 506 requires very detailed disclosure of all relevant information to potential investors; the extent of disclosure depends on the dollar size of the offering. Rule 505 offerings may not exceed $5 million, less the total dollar amount of securities sold during the preceding 12 month period under Rule 504, Rule 505 or Section 3 of the act. This exemption limits the number of non-accredited investors to 35 but has no investor sophistication standards. Rule 505 requires disclosure similar to that required for Rule 506 offerings, under $7.5 million.
Rule 504 offerings allow a business to raise a maximum of $1 million, less the total dollar amount of securities sold during the preceding 12 month period, under Rule 504, Rule 505 or Section 3 of the act. However, a business can raise only $500,000 by the sale of securities to persons residing in the states of Montana and Alaska, which have no disclosure laws applicable to the offering. For the states that do have disclosure laws, which are 48 out of the 50 states, a business can raise up to $1,000,000. Rule 504 has no prescribed disclosure requirements, no limit on the number of purchasers, and no investor sophistication standards. So if you’re trying to raise capital using a PPM, use the above criteria as a cliff note and as long as you stay within SEC guidelines, raising capital can be easy.
Call 267-233-0183, Private Placement Memorandum Services, visit Princeton Corporate Solutions to get more info about Private Placement Memorandums and passing Due Diligence
Tags: insurance, investor finder, james scott, princeton corporate solutions, princetoncorporatesolutions.com, take company public, take company public otcbb, take company public pink sheets, take company public reverse merger, take my company public, take your company public
Dec 21st, 2009 Posted in insurance | no comment »
Whether you’re trying to raise debt or equity capital there are still certain unwritten rules that apply that cater to the mentality of today’s investor and funding community. Certainly there are scores of private placement memorandum and business plan chop shops that wouldn’t know how to properly consult with your company or write a fundable document even if they wanted to but they will gladly take your money to throw together a template and try to pass it off as custom work.
The issue is this, it’s not necessarily the consultant, though these fly-by-nights shoulder a large portion of the blame, but the client usually doesn’t even have the proper structure in place to attract a funding source even if they had the most incredible PPM and business ever to hit the venture capital marketplace. Here is a simple (very basic) way to evaluate your company to find out if you are properly structured to attract capital. Have a corporate meeting and ask yourselves the following questions: What type of corporate structure do you have and why did you choose that particular structure? Break down your executive infrastructure, where do your individual executives stand in your industry, do the unthinkable, Google everyone’s names; are the people running your company real industry players? Are all the basic positions accounted for (president, CFO, controller etc)? Next, look at your advisory board and board of directors. If by some miraculous act of God you actually have these two groups represented in your company, how did you qualify them? Sorry but if you have an attorney on your board because he’s, um…well, an attorney, that’s not good enough.
You need an industry specific legal guru who not only spells out the intricacies of your business genre’s regulation but they must also be actively qualifying potential strategic partnerships as alliances for your company. He should be reaching into his client base and actively picking companies that could enhance your company in distribution or in any other way that will have a profitable outcome for all involved. Each of the members must be serving a similar purpose.
Next, on what criteria are you basing your share price or loan amount? If you don’t have a clear cut ‘use of proceeds’ model, you need one. This and many, many other questions need to be asked before you are actually ready to raise capital and in all reality, until your corporate structure is in place you shouldn’t even attempt to write a business plan or a private placement memorandum. If you are serious about setting up your company to attract investors you need a turnaround consultant, you can’t do this on your own. There is an entire industry that centers around structuring companies for their first and ongoing capital raise.
Before you blackball your company by prematurely attempting to raise capital, the critical concepts you need to keep in mind are (precisely in this order): corporate structure, infrastructure, advisory board, board of directors, use of proceeds, business plan, private placement memorandum, investor finder, funding. Look at each aspect listed here as its own item, break it down and analyze every minute aspect of each element and look at everything objectively and eventually your company will evolve into a structure that is fundable and stabilized for years to come.
For Corporate Turnaround Services or Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: insurance, investor finder, investor finder services, james scott, private placement memorandum, take company public, take company public otcbb, take company public pink sheets, take company public reverse merger, take your company public
Dec 21st, 2009 Posted in insurance | no comment »
Hear this, if you’re paying your publicist to pitch radio, print media and television executives to give you a minute and insignificant slot in their barrage of media hodgepodge so you can go in, swallow your pride, look like an idiot to the masses then walk away with your tail tucked between your legs it’s time to wake up and experience the cutting edge hybrid publicity marketer and all the power that goes with it.
The new reality is that the industry position of the publicist and the advertising firm have merged into one, crystal clear beacon of light that has transformed the promotional industry forever. Publicity marketers are a very small and difficult to find group of online promotion guerillas that blast the internet with everything that the search engine craves and more so that your company comes up over and over again on the natural search results for industry specific keyword phrases that demand attention.
There are no spam or black hat methods at work. Publicity marketers grew up as personal computers became popular and were in college in the’90’s during the internet boom. These were the guys that kept companies moving after the tech crash and soon, their services became valuable to venture capital firms with IPOs to publicize, viral media to cater to the promotional needs of video game and film companies with a new hit and corporations that needed rapid reputation repair or solutions to a hostile competitor that was taking more than it’s share of a niche market.
The publicity marketer has the creative capacity to plunge his hands into the on the emotional programming of the consumer while simultaneously and gently cornering them in a way to trigger that internal buying mechanism that exists in the subconscious mind of everyone. Real publicity marketers can take any company, concept or brand and make it an online sensation in a very short time.
The publicity marketer is the new generation, web 2.0 promotional guru. If you’re still paying separate companies for your publicity and advertising needs, it’s time to track down a publicity marketer for one, ultra-powerful, turnkey solution that will start generating results immediately.
Take Your Company Public, Visit Princeton Corporate Solutions site or call 267-233-0183 Corporate Publicity at it’s finest
Tags: insurance, private placement memorandum, private placement memorandumsPrinceton corporate solutions, take company public, take company public otcbb, take company public pink sheets, take company public reverse merger, take my company public, take your company public
Dec 21st, 2009 Posted in insurance | no comment »
OK, you’re ready to take your company to the next level and your CFO and legal counsel have advised you to go public to raise capital as well as to retain some of those prize employees with stock options and to bait that new sales executive with a signing bonus made up of stock options. You’ve looked into everything from pink sheets to reverse mergers to OTCBB to IPO and you have come to the conclusion you’re going to need to take on investors so that you can afford to follow through with your plan. If you’re lacking the funds to dive right in and start creating your public structure, here is a way that just about any business can afford to go public.
First, get a real business plan. Your business plan needs to sizzle and reel in the investor and clearly paint a picture of your vision to the investor and their advisors. Next, you’ll want to raise an initial round of cash quickly so that you can afford to take your company public without hindering your current company structure with additional ancillary costs. You’re going to need something fast and affective; you should consider having a professionally authored private placement memorandum put together for your company.
If you are trying to go public via OTCBB a Regulation D Rule 504 exemption will suffice, if you are trying to achieve an IPO you’ll need to go with a Regulation D Rule 505 exemption (pink sheets and reverse mergers into shell corps are not very successful in immediate and long term success so I would suggest you stay away from these structures). Build into the PPM verbiage that you are raising an initial round of capital that will be used to take your company public. When savvy investors see that they are investing in a real, viable pre-IPO or pre-OTCBB formation you will see investors climbing out of the woodwork to give you cash if your business concept is sound.
Next you hire the consultants (usually the same firm that wrote your PPM) to start the process of taking you public. On the PPM your Mini/Maxi should allow you to use capital almost immediately to get the ball rolling on your public company. You can count on a solid OTCBB going for between $75k and $250k and an IPO going for $1M+ so have your PPM written accordingly. If you follow the path set forth above you will notice something extraordinary.
The only out of pocket expense you had was for your Private Placement Memorandum (and your business plan if you didn’t have one) and 100% of the capital needed to go public was supplied by greedy investors who are excited to invest because of the quick payoff of their investment when you go public. This process means you can literally take your company public for less than $5,000 (the typical cost of a strategic Private Placement Memorandum. This is a simple, strategic and inexpensive way to get the capital you need for your company quickly, without using your limited financial resources in the process.
$5,000 can Take Your Company Public, Call Princeton Corporate Solutions at 267-233-0183 OTCBB, IPO and PPM we do it all.
Tags: insurance, investor finder, investor finder service, private placement memorandum, private placement memorandums, take company public, take company public otcbb, take company public pink sheets, take company public reverse merger, take your company public
Dec 1st, 2009 Posted in insurance | no comment »
If you’re on the venture capital trail there’s no doubt you’ve heard the term that usually shuts most fund raising efforts down before they can actually begin, that term being ‘due diligence’. When an investor of venture capital firm expresses interest in funding your project, the next thing that happens after intent contracts are submitted is the dreaded due diligence process.
An air of disjunction usually hangs over the hearts of those about to go through this pride bashing procedure but if you are informed and prepared this process can go from being a migraine inducing nightmare to a confidence booster no brainier that starts a bidding war between investors. The reality of investor due diligence in the new millennium begins with a solid online investigation using the most popular search engine, Google.
The mandatory prerequisite for the entrepreneur is to mold a powerful and authoritative online presents with all the bells and whistles an investor is seeking in a well pedigreed executive staff that is asking for millions of dollars in investment capital. Your plan must be well diversified through various online media genres such as video marketing, how to videos, article submission and press releases with content focused on the cutting edge and leadership role your company plays in your industry niche.
In addition to filling your own blogs with new, viable content on a daily basis, you should make it a habit to blog on other industry specific blogs as you lead the investors back to your site with your blog signature. Don’t forget about the power of audio and video Pod-casting. Let the investors hear your voice, then them feel the powerful conviction and intonation in the keywords as you hypnotize them and place them under your spell.
There are products on the market that cater to plastering the internet with your message with a strong focus on company branding and mass media marketing and publicity. If you pay attention to the branding aspects of your company with a strong and authoritative position on the internet, due diligence will be as easy as taking a nap!
Learn more about Publicity Marketing, Princeton Corporate Solutions has lots of helpful information at their website on how to get Publicity publicity quickly
categories: take company public,take your company public,take my company public,take company public otcbb,take company public pink sheets,take company public reverse merger,investor finder,turnaround consultant,investor finder service,private placement memorandums
Tags: insurance, investor finder, investor finder service, private placement memorandums, take company public, take company public otcbb, take company public pink sheets, take company public reverse merger, take my company public, take your company public, turnaround consultant