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Posts tagged private placement memorandum
Are You Ready To Raise Capital for Your Company? Most Likely . . . You’re Not!
Jan 29th
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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!
Take Your Company Public and Grow Fast Via Acquisitions
Jan 19th
Many entrepreneurs and executives want to move forward with the process of going public merely for the ability to raise capital through the sale of stock. They usually don’t think of the strategies necessary to keep the momentum going such as how much equity to give up initially, how much equity to sell ongoing, how to capitalize off of the use of the securities as collateral for loans and lines of credit and so on.
One of the most profound strategies companies can use to retain company equity while capitalizing off of their public entity is to put up portions of their securities as temporary collateral for loans and to use securities to grow through acquisition of strategic alliances.
Stock should be looked at as cash and designated for appropriate purchasing strategies. Stock monetized through collateralized lending can work wonders as long as the exit strategy is in place and secure. Your attorney should be well versed in this activity and audit the contract for convertible aspects which could strip the transaction of its advantageous nature.
Debt that converts to equity means giving up a huge bartering chip for future transactions. Don’t give up equity unless you have to. There are scores of companies that will lend against your securities without having to give up long term equity. Use this strategy wisely and you’ll never have a problem getting capital.
Also, using stock to purchase strategic partners is more relevant now than ever. Purchasing a company with stock that can be monetized over time is an incredible way to grow through acquisition. Going public on the OTCBB is a quick and easy way to start using the countless capabilities for capitalization with a public entity. Going public simply to raise capital with your market maker or broker dealer would be selling yourself short. Take advantage of the countless ways your securities can work for you.
Take Your Company Public, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Is Your Company Going Public? Grow Quicker With Good Publicity
Dec 7th
As a publicist that has been in the game for around 11 years I laugh when I turn on the television to see an author on a talk show telling the audience about their book or flip on the radio in my car and hear the morning DJ interviewing a self proclaimed expert of some new weight loss program where you can lose 500 pounds in 48 hours.
I don’t laugh because of the content but because I know how much they had to pay a publicist to get that interview. I know that all the questions are predetermined and that the publicist who convinced this individual that TV and radio were the only way to get in front of the public is living in the’70’s and can’t seem to adjust to the new concepts of massive publicity for pennies and the young, hip publicists that have transformed the process of ga
The last thing I’m trying to offend any publicists out there but I’m going to tell the public a little secret. If you are seeking massive explosions of publicity for your business, book, musical act or future celebrity, there is a process that will blast your ‘brand’ to 10,000,000’s overnight. There is a process that will put your brand in front of your target market in hours, not weeks. There is no waiting on approval from a television network or radio channel.
That secret process is a cooperative of internet video distribution, press releases, article marketing, social book marketing, blogs and a few other online media distribution combination that will take your brand campaign from 0 mph to 100mph overnight. When you are interviewing publicists or brand recognition marketing specialist keep this in mind, any publicist can get you on TV or the radio with a couple calls since both of these media genres are constantly in need of content and truth be told, the results you’ll get are very minimal from these to publicity mediums.
The core of your interview should be quizzing them on their online media campaigns and viral media expertise. Don’t spend a dime until they’ve convinced you that their online strategies are on the cutting edge and cost effective. Online marketing strategies can literally have the internet screaming your name in hours.
Want Publicity, that works? Check out Princeton Corporate Solutions. Call 267-233-0183 for a Publicity Marketing firm that can deliver.
Take Your Company Public: Go Public Fast, Easy and Cheap!
Dec 5th
There is a misconception that the process of taking your company public has to be costly and stressful. The truth is that it’s the ‘learning curve’ that makes it stressful. By learning curve, I mean dealing with industry sharks that will con your company and take every dime you have while simultaneously never having the ability to take you public in the first place.
On a daily basis I hear one tragic story after another about how a pink sheets facilitator took them public and then dropped them without passing them to a broker dealer or market maker or someone to sell their stock to the public so they were left to fend for themselves. Another reoccurring story I hear is how a company sold a small start-up a shell company for a reverse merger but the shell had liens and shareholders that were ready to dump the stock as soon as the transaction was completed.
All this said, after the sharks and the scumbags there are many good consulting firms that love the industry and take joy out of helping a corporation fulfill the ultimate dream of a public offering through IPO or OTCBB or legitimate reverse merger (oh, the money is a nice benefit as well haha). The boutique firm is your best bet, if you can’t find one then find a small securities lawyer.
These people are in this for the love of the industry and the massive plethora of industries they get to work with. Personally, I love hearing from an executive that owns a company and is completely stressed, he’s been lied to, conned and feels helpless. It is an amazing feeling when I can calm his nerves and say, “All this is in the past, let’s talk about how we are going to make this work!” The relief in their voice after a statement like that is such a reward for me its difficult to put into words. I will customize a public offering strategy that falls within their affordability capacity of their company and put together a path to get them trading as quickly and efficiently as possible. I am happy to say that there are many consultants and attorneys that do the exact same thing.
If you are trying to figure out a quick, affordable way to take your company public here are some ideas to consider: most likely you won’t qualify for an IPO (that’s ok, most companies don’t) but you will qualify for an OTCBB offering which is just as rewarding and you can evolve that structure into the IPO phase if you so desire in the future. If you lack the capital for a public offering, consider raising a quick round with a Regulation D 504 (Private Placement Memorandum), its fast, easy and cheap. Raise the capital you need to pay your fees for going public and allow a group of eager investors to flip the bill. If you want to grow your company and take it into the ‘public’ arena this should be an exciting time, don’t ruin it by being stressed. Find a consultant that you feel comfortable with who will take the burden off of your shoulders and carry it for you; this is the job of the professional public offering consultant!
Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Taking Your Company Public? Get Tons of Free Publicity
Nov 24th
Obtaining real, long lasting publicity for your company, book, music group or any other type of entity can be an expensive proposition when you have a firm doing it on your behalf. It can be time consuming and a technical nightmare as you have to be well rounded with the various high pr websites in the countless genres of online media so that your efforts reap true rewards.
People have found that It’s just too difficult to take on the vast process of publicity marketing themselves and have concluded to simply hire a company to take on this laborious task for them, but what if there was a way to do this on your own that made the process easier? Here are a few techniques that will get your publicity marketing campaign moving easily and quickly
First of all you need to use the element of video uploads, you can create a video with Camtasia, powerpoint or even the video camera you have on your phone. Make the video informative, solve problems for your clients, then upload it to YouTube. YouTube is the largest video traffic site online and will give you solid results. When you upload, use extremely targeted, industry specific keywords to help target your viewers.
Now, create and send out sizzling hot press releases. You can just go to Google and type in press release submission and find several sites that are high pr that you can submit to. A press release should spell out, without over selling, the unique aspects of your business to the public to raise brand awareness. Next, submit some hard hitting articles that talk about problems and solutions and useful techniques that customers of your industry would find helpful, then submit them to any of the multitude of online article directories, again, pay close attention to keywords as this is how your readers will find you.
Another great form of publicity marketing and branding are gently persuasive social and news bookmark submissions. Using bookmarking sites to get your name out there is a tremendous way to get attention and increase website traffic. You’ll create an enormous amount of back links to your site which will increase Google relativity for your site and make your brand and website more accessible to the public. These tactics will help you raise brand awareness and increase traffic quickly and they are pretty simple to facilitate. Use these techniques on a regular basis and you’ll see your brand awareness skyrocket in no time.
Hire A Professional Publicist, call us at 267-233-0183 or visit Princeton Corporate Solutions Publicity Strategies at there finest
How To Go Public
Nov 10th
Raising funds 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 ever 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 to the races!
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!
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