What are the minimum requirements to go public?
While it is good for a company to be profitable before going public, there are no minimum revenue, asset, or profit requirements to meet to go public! We have represented complete start-ups to companies generating millions in revenue.
Who should go public?
Ideal candidates for becoming a publicly traded company will have an experienced management team with the highest level of ethics and integrity. The company will have clearly identified target markets, meaningful competitive advantages, and a strong desire to create shareholder wealth. Additionally, it is an advantage if the company has plans to grow through mergers and acquisitions or through the recruitment and retention of key personnel.
Don’t I need a brokerage firm or investment banking firm to take my company public?
No. In fact, many companies opt to go public through a direct public offering. In this type of public offering, private companies follow the same rules and regulations followed by companies who go public with an investment banking firm.
Won’t going public force me to give up control of my company?
While there are additional constraints on public companies that do not apply to private companies, it is rare for a small or medium sized company to give up control upon going public. When they do, it is usually a voluntary decision, as they have a choice when issuing stock for assets, acquisitions or investment capital.
Can our company raise money while the SEC is reviewing our registration statement?
You can raise money before or after a registration statement is filed with the SEC. However, you cannot offer debt or equity securities while in review, unless you are offering promissory notes that meet certain criteria, or are using an exemption that expressly permits raising capital while under review by the SEC.
Can your company raise money for us?
While we do not raise capital for clients, we do have a list of investment bankers and licensed brokers who have expressed interest in evaluating our clients for financing after they become publicly traded. We cannot be part of any negotiations and do not earn any fees for introductions.
Do you provide investor relations services?
We do not provide investor relations services, but our founding managing member has meaningful investor relations experience and can provide you with general advice to design and implement a cost-effective investor relations program.
What valuation do you think we will have?
Our founding managing member was formerly a partner of a 700+ person investment banking firm and completed research, analysis, and evaluations on a wide range of companies. He was also an analyst at two money management firms. With sufficient information about your business, we can provide our opinion as to the likely valuation your company will have once traded.
What stock exchange do your clients trade on?
We can assist clients with trading on any U.S. exchange, including the NYSE and NASDAQ, as long as the client can satisfy the exchange requirements. Typically, our clients begin trading on the OTC QB and can upgrade as they grow. While within our experience and capacity, we will not assist companies interested in trading on the Pink Sheets unless the company is a reporting issuer.
Will you help my company go public?
If you demonstrate that you have a viable business, with ethical management that can implement your stated business plan, and have sufficient capital to cover all of the fees, then it is very likely we can help you become publicly listed.