| Casual Articles |
Hubs | Hubbers | Topics | Request |
| #1 in Business | Subscribe Email Print |
|
You are here: Home > Business > Small Business > When Is The Best Time TO Take Your Company Public? |
|
Casual Articles - When Is The Best Time TO Take Your Company Public?
Meet Success: Business Profile of Sylvia Acevedo, Communicard Owner the company’s shares while the IR is dumping their share.Sylvia Acevedo needed a break from her technology job so she bought an old Victorian house to remodel into a bed and breakfast. "Being an engineer working in technology, I really felt I didn't do a lot of tangible work. But with the bed and breakfast, at the end of the day, I felt like I had actually done something."And, of course, she had—because as she renovated the house, she transformed it into a beautiful B&B. She had no problem communicating with the construction crew, who were mostly Hispanic, because she grew up speaking both Spanish and English. "My mother was from Mexico and all of my grandparents lived there," she says."People would see me talking to a crew of workers and I literally would have contractors stop and hand me the phone, asking me to translate for them," she says. That's how she realized communication between Hispanic construction workers and non-Spanish-speaking supervisors was really a problem. An IR firm must be carefully and thoroughly check out by asking for names of previous and present client, just pull up chart of their clients stock and see if you detect a sudden rise in the share price and a quick drop once they began dumping their shares. There isn’t such a thing as a perfect time to go public and if you start preparing early you will be ahead of the curve, start by having your financials audited. This is something that will have to be done and so if you do as you go along you wont have the big expense all at once. Have a business plan prepared and that is a mirror of your vision and strategy, you will not stick to a business plan that does not reflect your ideal and your vision of what is going to work. Make sure the business plan is sound and also flexible, it must allowed for a change in direction when one is warranted. A business plan is like a road map, it has a starting point an a destination, you mapped out the way you wan Digital Signage Strengths Resemble Those of Growing Digital Billboard Networks CEO’s often call and ask me what the revenues and net profit should be before going public, they seem to think that there is a magic number that qualifies a private company into becoming a public company.Out-of-home advertising -the nice-sounding term for all types of advertising consumed away from home, including digital signage- is likely to become an even more important component of the advertising landscape with this week's announcement that Clear Channel Outdoor Holdings will roll out digital billboards in four more cities: Akron, OH, Columbus, OH, Memphis, TN, and Wichita, KS.Making up the digital billboard network in each city are:Memphis: five 14-foot-by-48-foot digital displays;Akron: six 14-foot-by-48-foot digital displays;Wichita: six 12-foot-by-24-foot digital displays;Columbus: six 12-foot-by-24-foot digital displays.While the size of Clear Channel Outdoor's displays and its ongoing commitment to building digital billboards networks are impressive, what's more impressive is the flexibility the new medium brings to the advertising community. The company plans to r There is no set amount of revenues or net profit that is required to take your company public, then when is the absolute best time to go public? The short answer would be when you don’t need to, or your company is not desperately looking for financing in order to survive. Instead you are looking for capital in order to finance growth and expansion, or you would like to use the public shares as currency to make acquisitions. But life isn’t always perfect, so we will take a look at a few questions asked by CEO’s that have called me looking to go public. What should revenues and net profit be before going public? A company could conceivably have 5 consecutive year of profitability and be a bad candidate for going public. I recently had a CEO called me from such a company, the revenues and net profit were identical for the previous five years but robust compare to many of the companies you see going public in the NASDAQ BB and Pink Sheets today. But I didn’t see any growth in either revenues or net profit nor any indication that there was going to be some in the future, the CEO did not know where future growth would come from. I told him that if he was just going public so that he could tell friends that he was the CEO of public company then he shouldn’t go public. But if he could develop a strategy for growth and put together a business plan outlining how he was going to grow revenues and net income, he could become an outstanding candidate for going public. The opposite of that would be a company that has been losing money for 5 years but is exhibiting growth in revenues every year and the losses are smaller. This company has a business plan and targets for business expansion and every year is meeting those targets, and going public is part of the business strategy. So you tell me which company has the greater potential of being a successful public company? Investors are always looking for growth candidates to put their money in to. So they will go with the company that has the potential to make them the most money in the future. Another situation that I often come across is CEO’s who want to go public and don’t have any money for the audit or the legal fees. There are certain expenses associated with going public that need to be paid. These CEO’s often want to do a reverse merger because it’s the fastest way to go public, but Public Shells are expensive and could be the costliest avenue use to go public. When a private company purchases a Public Shell, the purchaser must perform a thorough due diligence of the Public Shell to make sure that it is clean and not bringing any past legal problem to the private company. The due diligence process often get neglected because the private company is not familiar with the ins and outs of the public arena. So they often take the advised given by the shell owner and submit to his demands. When companies rush to go public they often live to regret it, short cuts can be very expensive. I always give CEO’s who call me the alternative to reverse merger, such as Direct public offering, Regulation D or IPO but if their minds are already made up or they may have already purchased the Shell without doing proper due diligence. I will do all I can to try and make it work but the CEO must be warn of the perils ahead and how to prepare for them. For example if he does have a lot of shareholders and a lot of shares outstanding he must reverse split the shares to reduce the number of shares available for sale including those own by the Shell owner. The Shell owner will often require the private company to sign an agreement not to reverse the share prior to the sale, if they agree to this demand they will be making a big mistake. Also if the company hires an investors relation firm to do PR work and pays them in stock they will see a temporary interest in the company’s shares while the IR is dumping their share. An IR firm must be carefully and thoroughly check out by asking for names of previous and present client, just pull up chart of their clients stock and see if you detect a sudden rise in the share price and a quick drop once they began dumping their shares. There isn’t such a thing as a perfect time to go public and if you start preparing early you will be ahead of the curve, start by having your financials audited. This is something that will have to be done and so if you do as you go along you wont have the big expense all at once. Have a business plan prepared and that is a mirror of your vision and strategy, you will not stick to a business plan that does not reflect your ideal and your vision of what is going to work. Make sure the business plan is sound and also flexible, it must allowed for a change in direction when one is warranted. A business plan is like a road map, it has a starting point an a destination, you mapped out the way you want Accounts Receivable Factoring - An Exciting Alternative to Business Loans rofit were identical for the previous five years but robust compare to many of the companies you see going public in the NASDAQ BB and Pink Sheets today.Do your clients take 30, 60 or even 90 days to pay their invoices? Extending payment terms, as it is commonly known, is very common in the business world. Customers demand that they be given credit, in the meantime you still have to pay for your company’s ongoing expenses.This can be a problem for companies of all sizes – from large established concerns to small startups. Unless you have enough cash to pay for business expenses – rent, salaries and suppliers – while you wait to get paid - your company is bound to run into problems. You may have to avoid taking large orders to conserve cash. Or worse, you may have to delay payments to employees or key suppliers.Is the solution to get a business loan from the bank? Hardly. Banks only lend to companies that can provide detailed financials and show profitable operations for many years. If you get a loan, it will be for a fixed amount. If you need additional funds, you’ll need to g But I didn’t see any growth in either revenues or net profit nor any indication that there was going to be some in the future, the CEO did not know where future growth would come from. I told him that if he was just going public so that he could tell friends that he was the CEO of public company then he shouldn’t go public. But if he could develop a strategy for growth and put together a business plan outlining how he was going to grow revenues and net income, he could become an outstanding candidate for going public. The opposite of that would be a company that has been losing money for 5 years but is exhibiting growth in revenues every year and the losses are smaller. This company has a business plan and targets for business expansion and every year is meeting those targets, and going public is part of the business strategy. So you tell me which company has the greater potential of being a successful public company? Investors are always looking for growth candidates to put their money in to. So they will go with the company that has the potential to make them the most money in the future. Another situation that I often come across is CEO’s who want to go public and don’t have any money for the audit or the legal fees. There are certain expenses associated with going public that need to be paid. These CEO’s often want to do a reverse merger because it’s the fastest way to go public, but Public Shells are expensive and could be the costliest avenue use to go public. When a private company purchases a Public Shell, the purchaser must perform a thorough due diligence of the Public Shell to make sure that it is clean and not bringing any past legal problem to the private company. The due diligence process often get neglected because the private company is not familiar with the ins and outs of the public arena. So they often take the advised given by the shell owner and submit to his demands. When companies rush to go public they often live to regret it, short cuts can be very expensive. I always give CEO’s who call me the alternative to reverse merger, such as Direct public offering, Regulation D or IPO but if their minds are already made up or they may have already purchased the Shell without doing proper due diligence. I will do all I can to try and make it work but the CEO must be warn of the perils ahead and how to prepare for them. For example if he does have a lot of shareholders and a lot of shares outstanding he must reverse split the shares to reduce the number of shares available for sale including those own by the Shell owner. The Shell owner will often require the private company to sign an agreement not to reverse the share prior to the sale, if they agree to this demand they will be making a big mistake. Also if the company hires an investors relation firm to do PR work and pays them in stock they will see a temporary interest in the company’s shares while the IR is dumping their share. An IR firm must be carefully and thoroughly check out by asking for names of previous and present client, just pull up chart of their clients stock and see if you detect a sudden rise in the share price and a quick drop once they began dumping their shares. There isn’t such a thing as a perfect time to go public and if you start preparing early you will be ahead of the curve, start by having your financials audited. This is something that will have to be done and so if you do as you go along you wont have the big expense all at once. Have a business plan prepared and that is a mirror of your vision and strategy, you will not stick to a business plan that does not reflect your ideal and your vision of what is going to work. Make sure the business plan is sound and also flexible, it must allowed for a change in direction when one is warranted. A business plan is like a road map, it has a starting point an a destination, you mapped out the way you wan The Changing Face of Business in the 21st Century company has the greater potential of being a successful public company?Doing business in the 21st century is entirely different than what it was twenty years ago. At that time computers were not a routine part of small business and it was extremely costly to get started in business. If you are thinking of setting up a brick and mortar business, then the costs have escalated in the past two decades, but it is extremely cost effective to start your own online business.The way you pay for things that you buy has also changed. Now you don't have to carry large amounts of cash because you can use your debit card and have the funds come out of your bank account automatically. Even paying your bills has become easier with online banking and you can go shopping at any time of the day or not when you shop online. Because of this more businesses than ever before are hiring webmasters to set up and manage their websites so that they can deal with customers from all over the world. Now you can do business with a co Investors are always looking for growth candidates to put their money in to. So they will go with the company that has the potential to make them the most money in the future. Another situation that I often come across is CEO’s who want to go public and don’t have any money for the audit or the legal fees. There are certain expenses associated with going public that need to be paid. These CEO’s often want to do a reverse merger because it’s the fastest way to go public, but Public Shells are expensive and could be the costliest avenue use to go public. When a private company purchases a Public Shell, the purchaser must perform a thorough due diligence of the Public Shell to make sure that it is clean and not bringing any past legal problem to the private company. The due diligence process often get neglected because the private company is not familiar with the ins and outs of the public arena. So they often take the advised given by the shell owner and submit to his demands. When companies rush to go public they often live to regret it, short cuts can be very expensive. I always give CEO’s who call me the alternative to reverse merger, such as Direct public offering, Regulation D or IPO but if their minds are already made up or they may have already purchased the Shell without doing proper due diligence. I will do all I can to try and make it work but the CEO must be warn of the perils ahead and how to prepare for them. For example if he does have a lot of shareholders and a lot of shares outstanding he must reverse split the shares to reduce the number of shares available for sale including those own by the Shell owner. The Shell owner will often require the private company to sign an agreement not to reverse the share prior to the sale, if they agree to this demand they will be making a big mistake. Also if the company hires an investors relation firm to do PR work and pays them in stock they will see a temporary interest in the company’s shares while the IR is dumping their share. An IR firm must be carefully and thoroughly check out by asking for names of previous and present client, just pull up chart of their clients stock and see if you detect a sudden rise in the share price and a quick drop once they began dumping their shares. There isn’t such a thing as a perfect time to go public and if you start preparing early you will be ahead of the curve, start by having your financials audited. This is something that will have to be done and so if you do as you go along you wont have the big expense all at once. Have a business plan prepared and that is a mirror of your vision and strategy, you will not stick to a business plan that does not reflect your ideal and your vision of what is going to work. Make sure the business plan is sound and also flexible, it must allowed for a change in direction when one is warranted. A business plan is like a road map, it has a starting point an a destination, you mapped out the way you wan How to Generate Sales Referrals en by the shell owner and submit to his demands.Generating sales referrals and repeat business is necessary to expand your business and ensure the success of sales professionals. At times, the importance of sales referrals is often overlooked or not emphasized enough. This can be the difference between top producers and over performers versus under performers and those who comes close to attaining their goals.It is important to acknowledge and recognize your clients regularly especially those that gives you the most business. These clients can be referred to as your ‘gold clients’ and should be given attention and treated with care (all clients are important). If customers are satisfied with your products and services then they will tell you. They will also tell others they know since people have a natural tendency and impulse t spread good experiences. Also, by asking or referrals these clients will be more than happy to provide you with referrals because they would feel comforta When companies rush to go public they often live to regret it, short cuts can be very expensive. I always give CEO’s who call me the alternative to reverse merger, such as Direct public offering, Regulation D or IPO but if their minds are already made up or they may have already purchased the Shell without doing proper due diligence. I will do all I can to try and make it work but the CEO must be warn of the perils ahead and how to prepare for them. For example if he does have a lot of shareholders and a lot of shares outstanding he must reverse split the shares to reduce the number of shares available for sale including those own by the Shell owner. The Shell owner will often require the private company to sign an agreement not to reverse the share prior to the sale, if they agree to this demand they will be making a big mistake. Also if the company hires an investors relation firm to do PR work and pays them in stock they will see a temporary interest in the company’s shares while the IR is dumping their share. An IR firm must be carefully and thoroughly check out by asking for names of previous and present client, just pull up chart of their clients stock and see if you detect a sudden rise in the share price and a quick drop once they began dumping their shares. There isn’t such a thing as a perfect time to go public and if you start preparing early you will be ahead of the curve, start by having your financials audited. This is something that will have to be done and so if you do as you go along you wont have the big expense all at once. Have a business plan prepared and that is a mirror of your vision and strategy, you will not stick to a business plan that does not reflect your ideal and your vision of what is going to work. Make sure the business plan is sound and also flexible, it must allowed for a change in direction when one is warranted. A business plan is like a road map, it has a starting point an a destination, you mapped out the way you wan Secret Shopper Tips the company’s shares while the IR is dumping their share.Once you’ve been selected for a Secret Shopping assignment, you will be judged according to your performance, professionalism and initiatives. Future employment will also depend on how impressed past employers had been with the work you’ve done for them. So, on the whole, good performance is the key to a successful Secret Shopping job.Punctuality is an important factor if you want to continue working for any kinds of employers, including Secret Shopping Companies. Schedulers can be very strict if you do not follow their timetables, which might even cost you your job. So, always show up for work in time and submit your report within the specified time. Be straightforward if you happen to be late for work instead of making up ridiculous excuses.Follow instructions and directions exactly the way they are written. Do not take any initiatives by yourself if the hiring company does not specifically ask you to. This can result in un An IR firm must be carefully and thoroughly check out by asking for names of previous and present client, just pull up chart of their clients stock and see if you detect a sudden rise in the share price and a quick drop once they began dumping their shares. There isn’t such a thing as a perfect time to go public and if you start preparing early you will be ahead of the curve, start by having your financials audited. This is something that will have to be done and so if you do as you go along you wont have the big expense all at once. Have a business plan prepared and that is a mirror of your vision and strategy, you will not stick to a business plan that does not reflect your ideal and your vision of what is going to work. Make sure the business plan is sound and also flexible, it must allowed for a change in direction when one is warranted. A business plan is like a road map, it has a starting point an a destination, you mapped out the way you want to go but sometimes you must take and different route to get there. Make sure you have capable competent people in the right positions a small company is not the place for specialist, you must have people who can multi task or you will be force to hire more employees than necessary. Remember nobody know your business like you do but there are certain business principles that that must be adhere to, as well as ethical conduct that must be applied. If you just follow the golden rule “Do unto others and you would have them to unto you” you will have done your part. Because you always reap what you sow. You must be wise in selecting the people you deal with. There are a lot of unscrupulous character in the shell and consulting business who will sell you on going public even if you are not ready. They will also sell you a Corporate Shell and anything else they can, and before you know you will be calling a legitimate consultant to help you but it may be too late. I recently had a phone call from a CEO who had a nice small company but he need capital to finance the growth in the business, the company was growing every quarter but was trading for pennies because it had over 150,000,000 shares outstanding. I suggested that he needed to do a reverse split before I could go to my financing people, because nobody will put money into a company that is so diluted. He replied that he couldn’t reverse the shares do to an agreement with the shell owner. When you buy a shell make sure you are buying the entire flow and that the shares in the hands of the public is not substantial. Otherwise choose an alternative way of going public. Reverse Merger is not the only way to go public. Reverse Merger may be the least desirable option for some people, So before taking any action look into the other options available. If the consultant you hire only know Reverse Merger maybe its time to look for somebody else. There isn’t a perfect time to take your company public, it must be part of your over all business strategy and vision, and it requires a desire to make work. If you are ready to take your company to the next level or have any question do not hesitate to email me joe@genesiscorporateadvisors.com or visit our website: www.genesiscorporateadvisors.com
HTTP = HTML link (for blogs, profiles,phorums):
Related Articles:Surplus Merchandise, the Direct Under Wholesale Source Manager Training Requirements in Franchising Companies
|